Singapore Air bracing for another record loss with travel halted

Singapore Airlines is poised for another hefty quarterly loss after the coronavirus left it flying a tiny fraction of its usual number of passengers. The airline warned this month that it expects a material operating loss in its fiscal Q1. It already suffered a record net loss of S$732m (US$530m) in the three months through March, when it was hit by fuel-hedging losses as well as a collapse in demand triggered by the outbreak. That left the carrier with its first annual loss in its 48-year history. The net loss could widen to S$1.2b for the quarter through June and revenue may slump 87% because of a 96% drop in capacity, according to Bloomberg Intelligence analysts James Teo and Chris Muckensturm. Fuel-hedging losses will again take a toll, and this time there are also S$124m in liquidation costs for NokScoot Airlines. Singapore Airlines owned a 49% stake in the low-cost Thai carrier that collapsed in June. SIA is in a particularly tight spot as it is dependent on international flights. The carrier and its SilkAir and Scoot units flew 17,700 passengers in June, compared with 3.2m a year earlier. “Progress towards a global lifting of border controls and travel restrictions, which could facilitate or result in the easier movement of travelers between countries, is slower than earlier expected,” SIA said on July 15. The airline will hold its AGM Monday morning and release a Q1 business update after trading hours on Wednesday.<br/>