SIA to cut capital spending by 12% amid coronavirus crisis

Singapore Airlines said Friday it would slash capital spending by 12% to $5.3b from a previously planned S$6b in the financial year ending March 31 as it grapples with the coronavirus crisis. The airline's update from its last estimate in November was provided in presentation slides released ahead of an analyst and media briefing to discuss its full-year results. SIA Thursday evening reported its first-ever annual loss, citing poor fuel hedging bets and the collapse in demand driven by the coronavirus pandemic, saying the timing of any recovery was uncertain. The latest capital spending budget reduces the amount spent on new aircraft by $600m and on other items by $100m. The airline said it was negotiating with aircraft manufacturers to adjust the delivery stream for orders placed in the past because of the current market conditions. Singapore Airlines and regional arm SilkAir have cut 96% of passenger capacity through the end of June, and low-cost arm Scoot has cut 98%.<br/>