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SINGAPORE (THE BUSINESS TIMES) – Singapore Airlines (SIA) net loss in the second quarter doubled that of the first quarter, leading to a record net loss of $ 3.47 billion for the six months through September.
Second-quarter losses were due to an older aircraft impairment charge, as well as a reduction cost of $ 42 million.
The national carrier reported a loss of $ 1.1 billion during the first quarter through June. With a first-half loss of $ 3.47 billion, that means it bled $ 2.3 billion, double the loss in the first quarter, in the second quarter.
The first half net loss was a reversal of a $ 206 million profit from April to September last year, before the Covid-19 pandemic caught her by surprise.
Revenue was down 80.4 percent to $ 1.63 billion during the first half of fiscal 2021, compared to $ 8.3 billion in the prior year.
The impact of the pandemic has not only resulted in a sharp drop in revenue, but has also led the group to post a $ 1.33 billion deterioration in the book values of previous-generation jets, the airline said in a Press release released on Friday (Nov 6). ) after business hours.
In addition to the deterioration of the aircraft, SIA has also fully written off the goodwill of $ 170 million that was recorded when it took control of Tiger Airways in October 2014.
In addition, the downsizing exercise that cut 2,000 jobs cost the group $ 42 million, SIA revealed for the first time since its announcement of the ax drop.
An interim dividend has been skipped “in view of the significant loss incurred and the need to conserve cash.”
The SIA said the industry’s air cargo capacity is anticipated 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. Freight demand is also expected to get a boost from the big days of e-commerce sales and new product launches, 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 $ 3.48 on Friday, before financial results were released.
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