Singapore Airlines Reports First Quarter Loss of US $816.6 Million on 99.5 Percent Traffic Decline
Singapore Airlines announced on Wednesday a first quarter loss of S$1.1 billion (US $816.6 million) on a 79.3 percent year-over-year revenue decline to S$851 million (US $618.8 million). Group traffic fell 99.5 percent versus the same period last year.
On Tuesday (July 29, 2020) Singapore Airlines (SIA) announced a first quarter FY 2020/21 loss of S$1.1 billion (US $816.6 million) on a 79.9 percent year-over-year revenue decline to S$851 million (US $618.8 million). During the company’s fiscal first quarter the Group’s traffic, measured in revenue passenger kilometers (RPKs) declined 99.5 percent with a 99.4 percent decline at Singapore Airlines, 99.8 percent for SilkAir and 99.9 percent for Scoot. SIA Group’s first quarter expenses declined 51.6 percent to S$1.9 billion (US $ 1.4 billion). As of June 30, 2020, the Group’s cash and bank balances totaled S$9.6 billion (US $6.98 billion), while debt increased S$0.2 billion to S$12.0 billion (US $8.73 billion), resulting in a decline of debt-equity ratio from 1.27 to 0.68 times.
During the first quarter, SIA scaled back operations due to border closings and travel restrictions but maintained a vital network connecting Singapore with 14 key international cities, which increased to 24 destinations by the end of the quarter. SilkAir ceased network operations during most of the first quarter (except flights to Chongqing), while Kuala Lumpur and Medan were added to Silk’s network in June. The company’s low-cost subsidiary Scoot operated a minimal network during the quarter with services to Hong Kong and Perth and has subsequently resumed flights to Guangzhou, Ipoh, Penang and Kuching.
From June 8, 2020, SIA has entered a “Fast-Lane” arrangement between Singapore and select Chinese cities. With the lifting of some travel restrictions, SIA can now carry one-way traffic originating from Australia, New Zealand, China, Hong Kong, Taiwan, South Korea, Japan and Europe. Additionally, the Group’s carriers can now serve two-way transfer traffic between the South West Pacific and Europe as well as North Asia and between North Asia and Europe. The partial resumption of transfers via Singapore-Changi has increased SIA’s network destinations from 18 in April to 32 by the end of June.
Singapore Airlines expects second quarter passenger capacity to be around seven percent, as compared to pre-pandemic levels. The Group currently has a fleet of 220 aircraft including seven freighters, of which 32 are deployed on passenger service routes. SIA’s seven freighters remain operational and the company has also deployed 33 passenger aircraft on cargo-only routes. The company has parked 119 aircraft at Singapore-Changi, while an additional 29 aircraft are stored in Alice Springs.
Source: Singapore Airlines