Grappling with the coronavirus crisis, Singapore Airlines said it would slash capital spending by 12 per cent to S$5.3 billion from a previously planned S$6 billion in the financial year ending March 31.
The group said it lost S$732 million in January to March this year, down from the S$203 million net profit it made in the same period last year. Singapore Airlines did not declare a dividend and said the prospects of a recovery in worldwide travel depend on when border controls and travel restrictions are eased.
Operating profit for the year was down 94.5 per cent at S$59 million , from S$1 billion the previous year.
The airline, in a statement said that it had entered the fourth quarter on the “back of a strong performance” in its first nine months after “robust passenger traffic” and “extensive initiatives” undertaken as part of its transformation programme,
The airline announced its first round of flight cuts in late March when the airline said it would cut 96 per cent of its scheduled flights in response to the ongoing Covid-19 crisis. The carrier then extended its flight cancellations until the end of June.
The steep drop in passenger traffic in the fourth quarter resulted in a S$894 million plunge in revenue, a decline of 22 per cent from the same period last year. This led to the Group cutting 96 per cent of its flying capacity from April to June 2020.
“The prospects for a recovery in international air travel in the months ahead depend upon when border controls and travel restrictions ease,” said SIA in a statement.
SIA also said “there is no visibility on the timing or trajectory of the recovery” but “there are a few signs of an abatement” in the coronavirus crisis.
“The group will maintain a minimum flight connectivity within its network during this period, while ensuring the flexibility to scale up capacity if there is an uptick in demand,” SIA added.
SIA has set up an internal task force to ensure that is is “ready to ramp up services when air travel recovers”.
The group noted that it is “exploring other sources of funding, including financing and sale-and-leaseback transactions” to help boost liquidity.
While passenger demand is at an all-time low, the group said air-freight demand is strong which will “sustain cargo revenues for the near term”.
SIA is also planning on pursuing charter opportunities.
TEKEVER, a provider of unmanned aerial systems (UAS) in Europe, introduced its newest drone the ARX in San Diego, U.S.…
Viasat and uAvionix have teamed up to enhance global communication services for Uncrewed Aerial Vehicles (UAVs), with uAvionix joining Viasat’s…
Korean Air and WestJet have extended their codeshare agreement to provide additional transpacific travel options for passengers on Monday (Apr.…
China Eastern Airlines has reached an agreement with Amadeus concerning international NDC distribution, marking a significant development for both parties.…
Singaporean officials have launched an Invincible-class submarine for the Republic of Singapore Navy (RSN) at thyssenKrupp Marine Systems (tKMS) shipyard…
Ten died following a midair collision between an AW139 helicopter and a Fennec helicopter belonging to the Royal Malaysian Navy…
Integrated Surveillance and Defense (ISD) has been awarded a contract by the U.S. Naval Air Warfare Center Aircraft Division (NAWCAD),…
ST Engineering AirX (AirX), a joint venture between ST Engineering and Peluca (formerly known as Wigetworks), have announced a strategic…
WestJet Cargo is strengthening its flights between Calgary and Paris Charles de Gaulle (CDG). The route will operate 5-7 times…
Embraer delivered 25 jets in 1Q24, an increase of 67% compared to the 15 aircraft delivered in 1Q23. Executive Aviation…
Harbour Air, North America's largest seaplane airline, has signed a Letter of Intent (LOI) to purchase 50 magni650 electric engines,…
Emirates President Sir Tim Clark has apologised to customers for the disruptions caused by the severe weather that battered Dubai…
The Indonesian Navy (TNI Angkatan Laut - TNI AL) aims to enhance its operational capabilities between 2025 and 2044 with…
The Philippine Armed Forces (PAF) took delivery of the first India-made BrahMos land-based anti-ship missile system at Clark Air Base…
The UK Ministry of Defence (MoD) ordered six Airbus H145 helicopters as part of its efforts to update its rotary…
The Brazilian aerospace company, Embraer, signed a Memorandum of Understanding (MoU) with AICAT (Austrian Industrial Cooperation & Aviation Technology) to…
Qatar’s Hamad International Airport (DOH) announced that it has reclaimed the title of the "World’s Best Airport" at the prestigious…
Israel Aerospace Industries (IAI) joined the Sharp Technics K (STK) and Incheon International Airport Corporation for a ceremony heralding the…
Curtiss-Wright Defense Solutions division has forged a strategic alliance and reseller agreement with Rancher Government Solutions (RGS), a provider of…
Saudia, the national airline of Saudi Arabia, has experienced a significant surge in brand value, as indicated by the latest…
The ongoing eruption of Mount Ruang in the Siau Islands regency, North Sulawesi, Indonesia has caused significant disruptions to air…
Scoot, the low-cost arm of Singapore Airlines, recently received the first Embraer E190-E2 aircraft at Changi Airport. "We are excited…
The first of two Fincantieri-built PPA (Pattugliatore Polivalente d'Altura - offshore multi-purpose patrol vessel) for the Indonesian Navy is expected…
Thailand’s DTI (Defence Technology Institute) and the Royal Thai Army recently conducted a successful test of the DTI-STD-003 bridge layer…
Eve Air Mobility has signed a letter of intent with AirX, Japan’s largest public helicopter air charter service, for up…
L3Harris Technologies has received a US$256 million order from the U.S. Army for continued production of the Enhanced Night Vision…
The Missile Defense Agency has selected Lockheed Martin to deliver the nation's new homeland missile defense capability, the Next Generation…
Collins Aerospace will introduce two major upgrades to the Ascentia software platform. Ascentia is a software solution for aircraft reliability management that…
Pratt & Whitney Canada's PT6A engine recently surpassed 25 million flight hours and 40 years of powering the Cessna Caravan…
The US Army deployed its Mid-Range Capability (MRC) missile system to Northern Luzon, Philippines for the first time. This deployment…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.