(Singapore, July 30, 2020) It will take two to four years for air passenger traffic numbers to return to the pre-pandemic levels, Singapore Airlines said while announcing its largest quarterly loss on record till June 30.
A worst-ever $1.12 billion net loss in the quarter ended June 30 was reported as demand plummeted amid travel restrictions caused by the Covid-19 pandemic.
On its outlook, SIA believes that international air travel is not recovering as quickly as expected, with industry experts such as the International Air Transport Association and the International Civil Aviation Organisation projecting slower recovery of global passenger traffic in the near term.
“Demand for air travel evaporated as travel restrictions and border controls were imposed around the world to contain the spread of the virus,” the SIA statement says.
Its revenue for the group plunged 79.3 per cent to $851 million year on year, while expenditure dropped 51.6 per cent to $1.89 billion, the company said in a regulatory filing.
Passenger carriage fell across SIA, SilkAir and Scoot, resulting in a 99.5 per cent decline for the company.
“We are reviewing the shape and size of our network over the longer term, given Covid-19 and its impact on our passenger traffic and revenue, which will provide clarity on fleet size and mix that (Singapore Airlines) will need.”
In all, SIA has raised about $11 billion in liquidity since the start of its financial year in April.
Experts believe that as travel demand remains substantially subdued for a prolonged period and the air travel demand has plunged quickly in recent weeks, a prolonged drop in air travel demand will lead to more losses for SIA.