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Singapore Airlines posted its biggest ever quarterly loss as the coronavirus decimated travel demand and fuel hedging and fleet impairment charges weighed on its bottom line. The carrier reported a net loss of S$2.3b ($1.7b) for the three months ended Sept. 30 versus a S$94.5m profit the same period a year ago, before Covid-19 spread around the world. Revenue plunged 81% to S$783.8m, the carrier said in an exchange filing Friday. Singapore Airlines is cutting about 20% of its workforce and has raised S$11b in funds through a rights offering and loans in a bid to survive the downturn. The IATA forecasts passenger demand may not return to pre-Covid levels before 2024. The situation is particularly dire for carriers like Singapore Airlines that have no domestic market to fall back on. “The recovery from the Covid-19 pandemic is likely to remain patchy, given the new waves of infections around the world and concerns about imported cases,” Singapore Airlines said. “Nonetheless there are early signs of optimism. Customers are slowly becoming more confident about air travel, given the robust health and safety measures that have been put in place by airlines, airports and governments.” The company implemented a second three-year transformation program in October as it tries to revive its business amid the devastating outbreak. Underscoring the long and difficult road to recovery, Singapore Airlines expects to only be back to around 16% of regular capacity by the end of January next year. It has restarted some routes, including its non-stop service to New York, and plans to gradually reinstate flights to places such as Brunei, Kathmandu and Male.<br/>

Singapore Airlines has modified two Boeing 777-300ERs to carry cargo in the passenger cabins, tapping into freight as an alternative revenue stream as it copes with depressed passenger demand from the coronavirus crisis. The carrier states that the first of the two converted aircraft took off on 5 November, operating a flight from Singapore to Tokyo Narita. All 264 passenger seats on the aircraft have been removed, allowing each 777 to carry up to 12% more freight. The two 777s modified are registered 9V-SWN and 9V-SWM, both of which were delivered to the carrier in 2008. Cirium fleets data indicates that SIA has a fleet of 27 777-300ERs, of which 18 are currently in storage. SIA said that it “will monitor the market” before deciding if it will convert any additional aircraft into temporary freighters. The carrier will also deploy the aircraft on other routes “based on operational requirements”. The SIA Group disclosed that it has 33 passenger aircraft that are operating cargo-only flights. It has also flagged its cargo operations as a growth opportunity in the near term, adding that it will expand the number of aircraft that will be modified to carry cargo. “In these unprecedented times, we will continue to remain nimble and respond swiftly to market needs,” it said. <br/>

Singapore Airlines Group has confirmed that its outstanding Airbus aircraft on order have been deferred and that it is close to concluding similar talks with Boeing. In Friday disclosing record half year losses amid the coronavirus crisis, SIA Group states that it has “concluded negotiations with Airbus on a revised aircraft delivery schedule incorporating deferrals for part of the aircraft on order”. It did not provide further details on the number of aircraft to be deferred. Cirium fleets data indicates that mainline carrier Singapore Airlines has 15 A350-900s on order, while low-cost unit Scoot has 29 outstanding orders for A320neos and a further 16 for A321neos. As for its orders with Boeing, SIA says discussions are “at an advanced stage”. The carrier has a larger order book with the US airframer, with 29 787-10s and 20 777-9s on order. Scoot has five 787s on order, while regional unit SilkAir has outstanding orders for 31 737 Max 8s, which are currently grounded globally. “These outcomes will help to moderate the aircraft delivery stream in the near term,” SIA Group states.<br/>

Lufthansa is to start trialling rapid pre-flight coronavirus antigen tests in Germany next week, which passengers will need to pass in order to fly. Only those testing negative or able to provide evidence of a negative test within the previous 48 hours will be allowed to board, the airline said Friday. The carrier will use the tests for two daily flights between Munich and Hamburg from Nov. 12 onwards to see how the test procedure can be included in the pre-flight routine. "Successful testing of entire flights can be the key to revitalising international air traffic," said Christina Foerster, Lufthansa board member for Customer, IT & Corporate Responsibility. "(We) want to gain insights into the use of rapid tests in asymptomatic groups of people." The pandemic has pushed the global aviation industry into its worst crisis, and a recovery to 2019 levels is not expected before 2025. Airlines worldwide are pressing governments to abandon or ease quarantines and other travel curbs that have worsened the slump, and instead roll out rapid COVID-19 testing at airports. Antigen tests give results much faster than the widely used PCR swab tests, which are done in a laboratory, but can be less reliable.<br/>

Ethiopian Airlines has taken delivery of another pair of Airbus A350-900s, both aircraft being handed over on the same day. The aircraft – MSN412 and MSN431, respectively ET-AYB and ET-AYA – departed Toulouse almost simultaneously for Addis Ababa in the early hours of 7 November. Ethiopian CE Tewolde Gebremariam says the aircraft are fitted with a new business-class cabin which will give the carrier a “strong competitive advantage” in the “high-end” market segment. “It is also visible evidence of our unique strength in the industry that we are able to take delivery of two brand new widebody aircraft during the worst and unprecedented global crisis – in which most of our competitors are depending on bail out money for their survival,” he adds. Gebremariam claims the introduction of the additional A350s is a “strong demonstration” that the carrier is handling the situation “exceptionally well”. He says Airbus has restructured the carrier’s delivery schedule and refers to “other incentives” which have enabled the airline to complete the delivery. Gebremariam points out, however, that the company remains in “crisis management mode” and needs to continue cost-saving and revenue-maximising efforts.<br/>

With major creditors of Asiana Airlines failing to find a potential buyer for the cash-strapped carrier, a feasible scenario is emerging that the Korea Development Bank (KDB) will let Korean Air handle Asiana's long-haul business, industry sources said Friday. The timely sales of the nation's second-largest carrier comes as a top priority for the main creditor, which recently signed a consultation contract with two management consultancies ― EY Hanyoung and Bain & Company. But for the creditor and Asiana, there are only a few limited options to choose from to ensure a rapid normalization of the airline's business as its financial soundness deteriorates. The creditors ― led by the KDB ― decided to provide 2.4t won to Asiana as part of an emergency loan to prevent the firm falling into a prolonged capital impairment, which may result in possible delisting from the local stock market. Industry watchers believe it will be very tough for Asiana to find a buyer at least until the end of this year due to the aviation industry's dismal outlook for recovery from the COVID-19 pandemic. Therefore, the creditors are considering selling parts of the firm's major businesses ― such as its license to operate a long-distance route ― to Korean Air, the largest carrier that is showing signs of bouncing back from the virus shock. The company is the only airline here to have reported an operating profit ― 7.6 billion won ― during Q3. "This is one of the feasible scenarios that the Asiana creditors consider when few companies are showing interest in purchasing a controlling stake in the airline," an industry source said.<br/>

Air NZ says people caught out by the requirement to have a managed isolation voucher before flying to this country can change their flights. Travellers are now required to have a voucher for a bed in a facility before boarding an international flight to New Zealand. The country's managed isolation facilities are now fully booked until after Christmas, meaning people who have booked flights without a voucher might be left high and dry. Some who booked flights home before the voucher system went live contacted RNZ earlier this week, concerned they could not secure a place in managed isolation to match their flights. Air New Zealand says people unable to get a voucher may make one date change at no extra cost. If a customer has a non-refundable ticket, they also have the option to hold the fare in credit.<br/>