Flag carrier Singapore Airlines (SQ / SIA) registered a full-year loss as passenger capacity is cut by 96% following a demand collapse due to the COVID-19 pandemic — the first time in the airline’s 48-year history.
In a company news release dated 14 May 2020, SIA said they are expecting capacity cuts in Fiscal Year 2020/2021 and some losses due to the plunging fuel prices amidst their market-to-market fuel hedging.
“The Group swung into an operating loss of $803M for the quarter, a $1,056M reversal from the profit of $253M last year. Net loss for the Group was $732M for the same period,” according to the company news release.
SIA had been proactively implementing measures to cut on expenses and conserve cash. Management pay cuts, voluntary and compulsory no-pay leave schemes, and a shorter work month for all ground staff, a reduction in Board Director’s fees, and deferment of non-essential projects and imposing tight controls on discretionary spending had so far been implemented by the airline group.
According to SIA, there is no visibility on the timing or trajectory of the recovery at this point, as the prospects for a rebound in international air travel in the months ahead depend upon when border controls and travel restrictions ease.
During the same reporting period, SilkAir recorded a reversal in operating performance from a profit of $15M in 2019 to a loss of $112M. Low-Cost Carrier (LCC) Scoot registered an operating deficit of $198M, $183M higher than 2019 figures.