Singapore Airlines goes through half of US$6.4 billion raised in two months

The Singaporean carrier has slashed salaries and put staff on unpaid leave as it operates at less than 10 per cent of capacity during coronavirus pandemic

Meanwhile, Australian carrier Qantas reported its first loss in six years and predicted it would not make money in the next financial year

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Singapore Airlines raised the funds in June after the coronavirus outbreak. Photo: EPA

Published: 5:54pm, 20 Aug 2020Updated: 10:04pm, 20 Aug 2020

Singapore Airlines burned through half the S$8.8 billion (US$6.4 billion) it raised through share sales in just two months, underlining how carriers continue to incur costs even as planes are grounded.

Of the S$4.4 billion spent since mid-June, S$1.1 billion was used for operating expenses, maturing fuel-hedging trades and ticket refunds from cancelled flights due to the coronavirus pandemic, the airline said on Wednesday. About S$2 billion was used to repay a bridging loan facility, S$900 million to service debt and S$200 million to buy aircraft.

Singapore Airlines raised the funds in June after the outbreak and resulting border restrictions decimated travel demand.

The airline industry is unlikely to recover fully before 2024, the International Air Transport Association said last month.

The proceeds spent during the two months to August 14 were almost equivalent to the combined net losses made by Singapore Airlines, Cathay Pacific Airways and Qantas Airways in the first half of the year.

To curb costs, the Singaporean carrier has slashed salaries and put staff on unpaid leave as it operates at less than 10 per cent of capacity.