[ad_1]
Fri, May 15, 2020 – 5:50 AM
Singapore
SINGAPORE Airlines (SIA) recorded a net loss of S $ 732.4 million in the fourth quarter, reversing from a net profit of S $ 202.6 million in the same period of the previous year.
This included S $ 198 million in fuel coverage losses as fuel prices fell towards the end of the quarter.
SIA also reserved S $ 710 million in market losses from surplus coverage that arose because the capacity cuts resulting from Covid-19 have meant that the carrier’s fuel consumption needs in the next fiscal year will be lower than anticipated. previously.
The carrier also warned of future losses in fuel coverage, noting that “fuel prices are likely to remain weak in the short term.”
Revenues in the three months to March 31 fell 21.9 percent to S $ 3.18 billion, due to a sharp drop in passenger traffic.
The group suffered an operating loss of S $ 803 million in the fourth quarter, from earnings of S $ 253 million a year ago.
Passenger revenue fell 27.4 percent, while cargo revenue decreased slightly by 4 percent, as the sharp drop in belly capacity resulting from the reduction in passenger flights was only partially mitigated by the increased use of cargo aircraft and the operation of cargo-only flights using passenger aircraft.
Parent airline SIA incurred an operating loss of S $ 583 million in the fourth quarter, reversing an operating profit of S $ 204 million in the same period last year.
SilkAir recorded an operating loss of S $ 100 million, reversing itself from an operating profit of S $ 11 million.
Scoot reported an operating deficit of S $ 125 million, deepening with a loss of S $ 6 million in the fourth quarter of last year.
Fourth-quarter loss per share was 61.8 Singapore cents, compared to earnings of 17.1 Singapore cents per share in the fourth quarter last year.
No final dividend was declared. In the previous year, a final dividend of 22 Singapore cents was declared.
The annual loss per share was 17.9 Singapore cents, against earnings of 57.7 Singapore cents per share last year.
During the 12 months ended March 31, SIA recorded a net loss of S $ 212 million, reversing a net profit of S $ 683 million in the same period of the previous year. This is the first annual SIA loss in history.
Operating profit was S $ 59 million, 94.5 percent less than S $ 1.07 billion last year, as the weaker performance from January to March eroded improvements made in the first nine months of the year, SIA said.
On March 26, SIA announced a rights issue to raise gross revenue of S $ 8.8 billion through the sale of shares and mandatory convertible bonds (MCBs). SIA also has the option to issue up to an additional S $ 6.2 billion through additional MCBs.
SIA said in its results presentation on Thursday: “This is intended to provide the group with additional liquidity if the crisis continues, and would only be tapped if necessary. We are currently exploring other sources of financing, including insured financing and sales and- subsequent lease transactions. “
SIA added: “Prospects for a recovery in international air travel in the coming months depend on when border controls and travel restrictions are eased. However, there is no visibility into the timing or trajectory of the recovery at this time, as there is little sign of a reduction in the Covid-19 pandemic. “
The group said it will maintain minimal flight connectivity within its network during this period, while ensuring flexibility to increase capacity if there is an increase in demand.
“Meanwhile, demand for essential goods such as medical supplies, pharmaceuticals and fresh food still exceeds air cargo capacity in many key lanes due to the sharp reduction in tummy capacity. This is expected to sustain cargo revenue to Short term. We will also continue to look for chartering opportunities, while closely monitoring changes in demand, “SIA said.
SIA shares fell 19 Singapore cents or 4.75 percent to S $ 3.81 on Thursday before the results were announced.
[ad_2]
