SIA reports first annual net loss in 48-year history
Singapore Airlines (SIA) announced that it suffered an annual net loss of S$212 million, a first in its 48 years of operation, after COVID-19 crippled travel demand.
The sudden halt in global travel belted Singapore Airlines in the fourth quarter and left it in the red for the year, it reported yesterday.
SIA Group has reported a net loss of S$212 million for the 12 months ending March 31, a reversal from the S$683 million profit in the previous year.
For January to March of this year, the airlines lost S$732 million, whereas it made a S$203 million net profit in the same period in 2019.
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SIA said that it had entered the fourth quarter on the back of a strong performance in its first nine months, after robust passenger traffic and extensive initiatives undertaken as part of its transformation programme.
“The prospects for a recovery in international air travel in the months ahead depend upon when border controls and travel restrictions ease,” said SIA.
“There is no visibility on the timing or trajectory of the recovery at this point, however, as there are few signs of an abatement in the COVID-19 pandemic,” it added.
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The airline has set up an internal task force “to review all aspects of our operations” so that it will be ready to ramp up when air travel is out of the doldrums.
SIA is undertaking a rights issue to raise gross proceeds of $8.8 billion through the sale of rights shares and rights mandatory convertible bonds. SIA shares hit a 30-year low of $3.74 ahead of yesterday’s results before closing down 4.75 per cent at $3.81.
