Singapore Airlines reports record $1.1 billion loss in Q1

[The_King]

SINGAPORE - Singapore Airlines (SIA) reported on Wednesday (July 29) a $1.12 billion net loss in the quarter ended June 30, its largest quarterly loss on record, as demand plummeted amid travel restrictions caused by the Covid-19 pandemic.

Revenue for the group plunged 79.3 per cent to $851 million year on year, while expenditure dropped 51.6 per cent to $1.89 billion, the company said in a regulatory filing.

SIA had entered the first quarter "at a time when market conditions were deteriorating rapidly due to the spread of Covid-19 globally", the group said.

"Demand for air travel evaporated as travel restrictions and border controls were imposed around the world to contain the spread of the virus."

Passenger carriage fell across SIA, SilkAir and Scoot as a result.

On its outlook, SIA noted that international air travel is not recovering as quickly as expected, with industry experts such as the International Air Transport Association and the International Civil Aviation Organisation projecting slower recovery of global passenger traffic in the near term.

 

 

"Industry forecasts currently expect that it will take between two and four years for passenger traffic numbers to return to pre-pandemic levels," said SIA.

 

The company expects that passenger capacity "may reach less than half of its pre-Covid-19 levels" by the end of this financial year.

"We are reviewing the shape and size of our network over the longer term, given Covid-19 and its impact on our passenger traffic and revenue, which will provide clarity on fleet size and mix that (Singapore Airlines) will need."

[Homelander]

That is a crazy loss...wonder how the other airlines are faring

[Bigbird]

IS it good time to pick up some SIA shares? or should wait? 

 

[socrates469bc]

10 hours ago, Homelander said:

That is a crazy loss...wonder how the other airlines are faring

 

sia suffers double whammy from demand destruction and its aggressive 'hedging' policy which is more like speculative trading.

 

https://www.eurofinance.com/news/airlines-divided-on-hedge-benefits-as-oil-volatility-surges/

 

i suspect sia is trading more than hedging since no trading company hedge up to 5 yrs ahead and this loss is more like taking straight positioning using otcs/futures rather than options.

 

since the state is the biggest stakeholder, oppo in parliament shld call up sia management for a inquiry.