The hardest hit in Asia, Singapore Airlines lost IDR 36.49 trillion due to Covid-19

SINGAPORE, KOMPAS.com – Airlines flight Singapore Airlines reported a net loss of Singapore $ 3.46 billion or US $ 2.57 billion as of September 2020.

This figure is equivalent to IDR 36.49 trillion (exchange rate IDR 14,200). The company said the net losses caused by the Covid-19 pandemic continued to erode demand for international travel.

During the last 3 months, airlines had a net loss of S $ 2.34 billion. The earnings were the worst quarterly for the airline’s existence.

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The second-worst quarterly result was a net loss in April to June 2020 of S $ 1.12 billion.

Quoting the Nikkei Asia, Sunday (8/11/2020), most of the red notes came from a $ 1.33 billion impairment cost on old planes. That’s why the company will release 26 of the 222 planes.

“After the completion of the long-term business study, it is known that there are too many planes to meet the flight requirements,” the company said.

Singapore Airlines is the airline that has been hardest hit in Asia, because it has no domestic routes.

The airline operated flights between Singapore and 43 destination countries globally at the end of September, up from 32 destinations in June.

Demand for passenger travel remains weak, even as Singapore is gradually reopening its borders to help the beleaguered transport industry.

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Recorded for the 3 months to September, the Singapore Airlines group, including short-haul flights SilkAir and low-cost flights Scoot, carried 98.8 percent fewer passengers than the previous year.

The volume of cargo and mail also fell 44 percent, which resulted in the company’s revenue in the third quarter dropping more than 80 percent compared to the previous year.

Due to weak demand, 143 of the 222 passenger and cargo aircraft weregrounded.

Maintained financial position

Despite heavy losses, Singapore Airlines’ financial position remains strong, having raised S $ 11.3 billion through the sale of new shares, supported by Singaporean investor and major shareholder, Temasek Holdings, as well as other financing activities.

The airline said it had approval from shareholders to raise additional funds of up to S $ 6.2 billion through convertible bonds.

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“The Group continues to seek additional funds to further strengthen (the company) during this period of uncertainty,” the company said.

Lastly, Singapore Airlines acknowledged the recovery from the pandemic is likely to remain uneven, given the new wave of infections around the world and concerns about imported cases lingering.

“But we are ready to quickly and decisively take all opportunities, and respond to any bad changes that may arise,” concluded Singapore Airlines.

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