Singapore Airlines Reports Full Year Net Loss of $212 Million on Revenues of $16 Billion
Singapore Airlines reported on Thursday a full year net loss of $212 million on a 2.1 percent revenue decline to $16 billion. In the fourth quarter of fiscal year 2019/2020, the carrier swing to an operating loss of $803 million, compared to a profit of $253 million in Q4 2018/2019.
Yesterday (May 14, 2020), Singapore Airlines reported a full year 2019/2020 net loss of $212 million on a 2.1 percent year-over-year revenue decline to $15.976 billion. The FY19/20 loss is attributable to a fourth quarter operating loss of $803 million, versus a profit of $253 million during the fourth quarter last year. The carrier implemented wide-ranging cost-cutting and capacity reductions starting in early February with Mainland China and the rest of their network by mid-March. As a result of the drastic decline in demand, fourth quarter revenue declined 21.9 percent year-over-year to $894 million. Singapore Airlines has subsequently cut capacity from April through June by 96 percent. Due to the collapse of oil demand, Singapore Airlines’ over-hedged position resulted in mark-to-market losses of $710 million.
In order to preserve cash, the carrier has implemented numerous initiatives including management and Board Director pay cuts, voluntary and compulsory unpaid leave and a shorter work month for all ground staff. Additionally, Singapore Airlines has worked with partners and suppliers to reduce costs and defer payments. The company has also imposed tight controls on discretionary spending, deferred non-essential projects and is negotiating delivery schedule and payment adjustments with aircraft manufacturers. On March 26, 2020, the Singapore Airlines Group announced a Rights Issue and Rights Mandatory Convertible Bonds to build liquidity. The carrier expects to raise $8.8 billion through the Rights Issue which is expected to close in June 2020 and has the option of raising an additional $6.2 billion through additional Mandatory Convertible Bonds.
Source: Singapore Airlines Group