Singapore Airlines posts largest loss of US$1.7 billion as coronavirus cuts global travel
- The national carrier is cutting about one-fifth of its workforce and has raised S$11 billion in funds in a bid to survive the downturn
- With flight demand not expected to return to pre-Covid levels before 2024, the situation is particularly dire as Singapore Airlines has no domestic market to rely on
The carrier reported a net loss of S$2.3 billion (US$1.7 billion) for the three months ended September 30 versus a S$94.5 million profit the same period a year ago, before the coronavirus disease spread around the world, closing borders and all but putting an end to international travel.
Revenue plunged 81 per cent to S$783.8 million, the carrier said in an exchange filing on Friday.
Singapore Airlines is cutting about one-fifth of its workforce and has raised S$11 billion in funds through a rights offering and loans in a bid to survive the downturn. The International Air Transport Association forecasts passenger demand may not return to pre-Covid levels before 2024.
The situation is particularly dire for carriers like Singapore Airlines that have no domestic market to fall back on.
“The recovery from the Covid-19 pandemic is likely to remain patchy, given the new waves of infections around the world and concerns about imported cases,” Singapore Airlines said in the statement.
“Nonetheless there are early signs of optimism. Customers are slowly becoming more confident about air travel, given the robust health and safety measures that have been put in place by airlines, airports and governments.”
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Grounded plane serves as restaurant to help Singapore Airlines stay aloft during Covid-19 pandemic