Highlights

Virus-hit Singapore Airlines suffers RM3.4 billion Q1 loss

 Publish date: Thu, 30 Jul 2020, 10:20 AM

SINGAPORE: Singapore Airlines (SIA) reported a first-quarter net loss of more than US$800 million (RM3.4 billion) on Wednesday, the latest carrier to take a massive hit as a result of the coronavirus pandemic.
 
Passenger traffic was reduced to almost zero in the three months to June, SIA said, leading to the Asian carrier's biggest-ever quarterly net loss of S$1.12 billion (US$816.58 million).
 
The numbers extended the flag-carrier's financial bloodletting after losing S$732 million in the 2019 fourth quarter ended March 31, leading to its first-ever annual loss.
 
"Demand for air travel evaporated as travel restrictions and border controls were imposed around the world to contain the spread of the virus," SIA said.
 
Earnings from cargo flights were not enough to offset the massive decline in passenger numbers, and group revenue plunged 79.3 per cent year-on-year, it said.
 
Shukor Yusof, an analyst with aviation consultancy Endau Analytics, described SIA's first-quarter earnings as "grotesque", reflecting the severity of coronavirus on the global industry.
 
"Unfortunately, there will be more losses in the coming quarters and which will require SIA to sadly lay-off staff," he told AFP.
 
It was also unlikely that the bulk of the airline's 19 Airbus A380s would return to service as there would be overcapacity, he said.
 
Wholly dependent on international routes, the airline was particularly hard-hit by the virus and cut passenger services by 96 per cent from April to June – grounding most of its fleet.
 
The International Air Transport Association (IATA) estimates that airlines operating in the Asia-Pacific region stand to lose a combined US$27.8 billion this year.
 
On Tuesday, IATA said global air traffic is unlikely to return to pre-coronavirus levels until at least 2024 – a year later than previously projected.
 
Among the reasons for this "more pessimistic" outlook is the slow virus containment in the United States and other developed economies, it said.
 
SIA said it has raised a total S$11 billion in fresh funds to help it weather the crisis, including S$8.8 billion from a rights issue backed by its majority shareholder, state investment fund Temasek Holdings.
 
 - AFP
 

 

Share this

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
View candlestick stock charts with Technical indicators
MQ Affiliate
Be rewarded by being an MQ Affiliate
 
 

237  841  406  512 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 XOX 0.24-0.015 
 SAPNRG 0.115-0.015 
 BORNOIL 0.07+0.005 
 AT 0.09-0.015 
 PWORTH 0.040.00 
 PHB 0.035-0.005 
 LAMBO 0.0550.00 
 TRIVE 0.020.00 
 PHB-WB 0.02-0.005 
 NEXGRAM 0.0650.00 

FEATURED POSTS

1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
2. MQ Affiliate – A smarter way to earn more rewards MQ Trader Affiliate Program
3. MQ Affiliate – How to become an effective affiliate MQ Trader Affiliate Program
4. MQ Affiliate – Upgrading to Affiliate Partner MQ Trader Affiliate Program
Partners & Brokers