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SINGAPORE, May 9 (Reuters) Singapore Airlines, the world's second-biggest airline by market value, on Tuesday posted an 8.3 percent decline in annual profit, missing market expectations, as record fuel prices eroded its earnings.

The state-controlled airline said it made net profit of S$ 1.24 billion ($789 million), below the S$1.26 billion average forecast by 17 analysts polled by Reuters Estimates.

The price of jet fuel rose 12 percent last year, and Singapore Air -- the city-state's only global brand whose ''Singapore Girl'' flight attendants are known for their sarong kebaya uniforms -- spent S$1.2 billion on fuel in the third quarter, 37 percent of its total expenditures.

Among the world's most profitable airlines, Singapore Airlines is 57 percent-owned by Temasek, Singapore's government investment arm.

It is worth around $10.6 billion on the stock market, making it the world's second-biggest airline after Southwest Airlines of the United States.

For the full year to March 2007, Singapore Air Chief Executive Chew Choon Seng is expected to turn in S$1.33 billion net profit, according to analysts polled by Reuters Estimates.

Its shares ended Tuesday's session at S$14.70, still well off a 2000 peak near S$20 but up 19 percent since the start of the year.

CEO Chew is scheduled to hold a briefing for analysts and media, which will be Web cast on the airline's Web site www.singaporeair.com at 0910 GMT.

REUTERS MP PM1646