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Singapore Airlines’ (SIA) net loss in the second quarter was double that of the first quarter, as it reported a record net loss of S $ 3.47 billion during the six months through September.
The second quarter losses were due to an older aircraft impairment charge, as well as a staff reduction cost of S $ 42 million.
The national carrier reported a loss of S $ 1.1 billion during the first quarter through June. With a first-half loss of S $ 3.47 billion, that means it bled S $ 2.3 billion, double the first-quarter loss, in the second quarter.
The net loss for the first half was a reversal of a S $ 206 million gain from April to September last year, before the new coronavirus pandemic caught her by surprise.
Revenue fell 80.4 percent to S $ 1.63 billion during the first half of fiscal 2021, compared to S $ 8.3 billion the previous year.
[[nid:507362]]The impact of the pandemic has not only caused a sharp drop in revenue, but has also led the group to post a S $ 1.33 billion deterioration in the book values of previous-generation aircraft, the airline said in a Press release published on Friday after the negotiation. hours.
In addition to the deterioration of the aircraft, SIA has also fully written off the goodwill of S $ 170 million that was recorded when it took control of Tiger Airways in October 2014.
Additionally, the downsizing exercise that eliminated 2,000 jobs cost the group S $ 42 million, SIA revealed for the first time since its announcement about the ax drop.
An interim dividend has been skipped “in view of the significant loss incurred and the need to conserve cash.”
SIA said that the industry’s air cargo capacity is expected to remain limited due to lower air cargo capacity arising from fewer passenger flights. This is expected to keep load performance and load factors “high” in the coming months.
Expect to see a progressive recovery in general cargo demand and continued strong demand for pharmaceuticals and perishables. Cargo demand is also expected to get a boost from the big days of e-commerce sales and the launch of new products, SIA said.
Therefore, it will continue to increase the group’s capacity to meet demand and expand the cargo network by deploying passenger aircraft in dedicated cargo operations.
SIA shares closed a penny higher in Singapore at S $ 3.48 on Friday, before financial results were released.
This article was first published in The Business Times. Permission is required for reproduction.
