Singapore Airlines Has $800 Million Loss in Q1

Singapore Airlines (SIA) reported a loss of over $800 million USD in the first quarter.

SIA reported that passenger traffic for the months from April to June was nearly zero. The airline is heavily dependent on international travel and cut passenger services by 96% for the period.

This loss follows a $532 million USD loss posted at the end of the fourth quarter, ending March 31.

SIA stated “Demand for air travel evaporated as travel restrictions and border controls were imposed around the world to contain the spread of the virus,”

Shukor Yusof, an analyst for Endau Analytics in aviation consultancy said “Unfortunately there will be more losses in the coming quarters and which will require SIA to sadly lay-off staff,”, describing the first quarter earnings for the airlines as “grotesque”.

Although, SIA has announced they were able to raise $8 billion USD in order to help combat the pandemic, $6.4 billion coming from a rights issue backed by state investment fund Temasek, its majority shareholder.

The International Air Transport Association (IATA) estimates that airlines operating in the Asia-Pacific region could lose a combined $27.8 billion USD for the year. The IATA also announced that global air travel is unlikely to return to pre-covid levels until 2024.