Singapore Air burns through half of cash raised in two months

SIA burned through half of the S$8.8b ($6.4b) it raised through share sales in just two months, highlighting how carriers’ expenses keep incurring even as planes are grounded. Of the S$4.4b spent since mid-June, S$1.1b was used for operating expenses, maturing fuel-hedging trades and ticket refunds from canceled flights due to the coronavirus pandemic, the airline said Wednesday. About S$2b was used to repay a bridge loan facility, S$900m to service debt and S$200m to buy aircraft. SIA raised the funds in June after the outbreak and resulting border restrictions decimated travel demand. The proceeds spent during the two months to Aug. 14 are almost equivalent to the combined net losses made by Singapore Airlines, Cathay Pacific and Qantas in H1. To curb costs, the Singaporean carrier has slashed salaries and put staff on unpaid leave as it operates at less than 10% of capacity.<br/>