Coronavirus: SIA expects full-year net loss for first time in its history

Singapore Airlines expects to make a full-year net loss for the first time in its history as the coronavirus continues to hammer the global aviation sector. The SIA Group, which comprises national carrier SIA, regional arm SilkAir and budget carrier Scoot, said in a Singapore Exchange update on Friday that the forecast is despite "strong results" in the first nine months of the financial year that ended in March 2020. A small operating profit is still expected for the full year, the airline added. Operating cash flows are expected to remain negative in the April to June quarter, with the Covid-19 pandemic not showing any definitive signs of abatement. The full results for the year will be announced on May 14. Making the announcement on the back of capacity cuts that will last until the end of June, the SIA Group said its financial situation has been worsened by the collapse of fuel prices in March, which led to fuel hedging losses. Only 4% of SIA and SilkAir planes are still flying, and just 2% of Scoot planes are expected to take to the skies in the next two months. The airline said: "The timing of any recovery from the Covid-19 crisis and its trajectory remain uncertain. During this time, the SIA Group continues to pursue steps to reduce costs and conserve cash, and proactively build liquidity and strengthen our balance sheet."<br/>