Singapore Airlines (SIA) has reported a record loss for the first half of its 2020/21 fiscal year, with group revenue down by 80.4% to $6.691bn in the six months to end Sept 2020 and a net loss of $3.467bn. This figure was partially offset by stronger cargo revenue, which rose 28.3% to $274 million.
Expenses fell 55% to $3.497bn, due to lower fuel expenditure, with non-fuel expenses down 54% as a result of capacity cuts, contract negotiations and staff-related measures. The group has so far reduced its headcount by 4,300 positions across its three airlines, incurring a cost of $42 million.
However, cost savings were offset by a fuel hedging loss of $563million. SIA has also booked an impairment charge of $1.3bn relating to the removal of 26 older aircraft: seven A380s, four 777-200/200Ers, four 777-300s, nine A320s and two A319s. A further $127million charge was also recognised for the impairment of seven 777s leaders to NokScoot and related costs.
Since the start of its financial year, SIA has increased its liquidity to $11.3bn via a $8.8bn rights issue in June 2020, secured financing on one A350-900 and 787-10s for @2bn and $500 million in unsecured financing.
SIA confirms that it has shareholder approval to raise a further $6.2bn through a convertible bond issuance.
SIA has further confirmed that it has concluded negotiations with Airbus for its deliveries, “incorporating deferrals for part of the aircraft order”, the group states.