Singapore Airlines Group has reported a more than S$1 billion net loss for the first quarter of financial year 2020/21.

Details of the losses were published in a news release on July 29, 2020.

Here are some of the details:

• Passenger carriage measured in revenue-passenger-kilometres fell by

- 99.4 per cent year-on-year for Singapore Airlines,

- 99.8 per cent for SilkAir, and

- 99.9 per cent for Scoot.

• This resulted in a 99.5 per cent decline for the group.

• Group revenue declined S$3.251 billion (-79.3 per cent) year-on-year to S$851 million during the first quarter.

• The sharp drop in passenger flown revenue was partially offset by improvements in cargo flown revenue.

• SIA has proactively deployed passenger aircraft on cargo missions to boost cargo capacity.

• This was due to airfreight capacity crunch coupled with strong demand for urgent movements of personal protective equipment, pharmaceuticals and fresh foods.

• Group expenditure decreased S$2.014 billion (down 51.6 per cent) from 2019 to S$1.888 billion, attributable to lower net fuel cost and non-fuel expenditure.

• Net fuel cost fell S$1.018 billion (-86.8 per cent) as capacity cuts and lower fuel prices led to a reduction in fuel cost before hedging of S$1.146 billion (-93.2 per cent).

• This was partially offset by fuel hedging losses on contracts which matured during the quarter, as compared to a gain in 2019.

• The group further recognised additional ineffective hedges with losses of S$464 million that have been recognised this quarter.

• Non-fuel expenditure was down S$1.46 billion (-53.5 per cent) year-on-year, following widespread cost-saving measures from capacity cuts as well as support schemes given by the government to reduce staff and other operating costs.

• Consequently, the group swung into an operating loss of S$1.037 billion for the quarter, a S$1.234 billion reversal from an operating profit of S$200 million last year

• For the quarter ended June 30, 2020, the group reported a net loss of S$1.123 billion, a deterioration of S$1.234 billion against last year.

• The group's passenger capacity by the end of Q2 FY20/21 is projected to be approximately 7 per cent compared to pre-Covid-19 levels.

• Currently, of a group fleet of 220 aircraft including seven freighters, 32 aircraft are deployed on passenger services.

• All seven freighters are operational, while 33 passenger aircraft have also been deployed on cargo-only services.

• SIA has parked 119 aircraft at Singapore Changi Airport, and 29 aircraft are stored in Alcie Springs.

• The group will continue to monitor the situation and, when appropriate, return the aircraft to Singapore ahead of re-introducing them to its operations.

• It is estimated to take between two to four years for passenger traffic numbers to return to pre-pandemic levels.

• By the end of FY20/21, the group's passenger capacity may reach less than half of its pre-Covid-19 levels.

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