Singapore Airlines braces for another record loss on virus
29 Jul 2020 03:45:17
Singapore Airlines, consistently voted one of the world’s best airlines by Skytrax, is poised for another hefty quarterly loss after the coronavirus left it flying a tiny fraction of its usual number of passengers.
The airline warned this month that it expects a material operating loss in its fiscal first quarter. It already suffered a record net loss of S$732 million (16 billion baht) in the three months through March, when it was hit by fuel-hedging losses as well as a collapse in demand triggered by the outbreak. That left the carrier with its first annual loss in its 48-year history.
The net loss could widen to S$1.2 billion for the quarter through June and revenue may slump 87% because of a 96% drop in capacity, according to Bloomberg Intelligence analysts James Teo and Chris Muckensturm. Fuel-hedging losses will again take a toll, and this time there are also S$124 million in liquidation costs for NokScoot Airlines. Singapore Airlines owned a 49% stake in the low-cost Thai carrier that collapsed in June.
Read full story: bangkokpost.com