SINGAPORE, May 20 — Singapore Airlines (SIA) on Wednesday (May 19) reported by far its worst ever full-year net loss of S$4.3 billion (RM13.3 billion), marking the second year that the national carrier has suffered losses since the Covid-19 pandemic hit last year.
During the previous year ended March 31, 2020, the red ink was S$212 million, which was the first full-year loss in SIA’s 48-year history. Only the tail-end of that financial year was hurt by the effects of Covid-19.
Describing the 12 months ended March 31, 2021, as the “toughest year in its history”, SIA said that group revenue sank 76 per cent or S$12.2 billion year-on-year to S$3.8 billion due to the plunge in passenger revenue across its three airlines — SIA, Scoot and SilkAir.
The slump in revenue was partially offset by higher cargo revenue, which rose by S$758 million — or 39 per cent — year-on-year to S$2.7 billion.
“Strong air cargo demand, especially in key segments such as e-commerce, pharmaceuticals and electronics, provided strong support for both cargo load factors and yields amid tight industry cargo capacity,” SIA said.
Group expenditure fell 60 per cent or S$9.6 billion to S$6.3 billion this financial year.
SIA said that some of the impairment charges in the latest results include S$1.4 billion recorded in the first half of the year on 33 aircraft that were evaluated to be surplus to fleet requirements.
The Covid-19 pandemic, which has seen the grounding of aircraft worldwide, has taken a heavy toll on the national carrier.
In its report, SIA said that it has seen passenger traffic nosedive 98 per cent due to global restrictions on international travel.
Looking ahead, the airline expects passenger capacity to be around 28 per cent of pre-Covid levels by June this year.
And by July, capacity is expected to reach around 32 per cent of pre-Covid levels, with an expectation to serve just under half the destinations that it operated before the crisis.
“Even though mass vaccination exercises are in progress in most of our major markets, the prognosis for the global airline industry remains uncertain.
“While domestic markets have recovered in some countries, international air travel remains severely constrained and its recovery trajectory is still unclear,” SIA said.
SIA’s share price fell 16 cents or 3.29 per cent to close at S$4.70 on Wednesday. The financial results were released after the market closed.
In early January 2020, before the pandemic hit, the stock was trading at about S$9 a share.
Separately, SIA announced the appointment of a new chief financial officer, upon the retirement of Stephen Barnes, 62.
Tan Kai Ping, 48, will take over the role on May 31. He joined SIA in 1995 as a cadet administrative officer. His most recent position was vice-president of finance and strategy. — TODAY
