On June 5, 2020, it was reported that Singapore Airlines (SIA) raised S$8.8 billion through share sales, in an attempt to combat the effects of Covid-19 on the airline.

The rights issue was backed by existing shareholder Temasek Holdings, according to Reuters.

Now, the national carrier has burned through half of the amount it raised in just two months, according to a report by Bloomberg.

Amount spent is more than double of SIA's net loss in the first half

Of the S$4.4 billion spent since mid-June, S$1.1 billion was reportedly used for operating expenses, maturing fuel-hedging trades and ticket refunds from cancelled flights due to Covid-19.

About S$2 billion was used to repay a bridge loan facility, S$900 million to service debt, and S$200 million to buy aircraft.

According to Bloomberg, the amount spent by SIA during these two months are almost equivalent to the combined net losses made by SIA (S$1.85 billion), Cathay Pacific (S1.75 billion) and Qantas (S$1.93 billion) in the first half of the year.

SIA has been carrying out cost-cutting measures

In addition to raising funds, many of SIA's staff also had to take pay cuts and compulsory no-pay leave in order to keep the airline afloat.

In March, it was reported that SIA pilots will have to take compulsory no-pay leave of between four and seven days a month.

This represents a pay cut of between 15 per cent to 55 per cent, depending on the pilot's rank.

More recently, on July 30, SIA announced that the airline will also be cutting pay for employees, managers and bosses.

In this round of cuts, all staff below the level of manager will face a 10 per cent pay cut, while those in more senior positions saw a greater reduction.

For example, SIA's CEO saw his salary slashed by 35 per cent.

The airline also offered a special Covid-19 early retirement scheme for all ground staff and pilots, which was made available to those aged 50 and above, with at least 15 years of service, and up to the level of divisional Vice-president (VP).

On Aug. 6, SIA revealed that more than 6,000 SIA group staff have taken up no-pay leave since they were first offered the scheme in March 2020.

The SIA group consists of SIA, SilkAir and Scoot.

The number, which includes ground staff, pilots, and cain crew, makes up about one quarter of its 27,000 employees.

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Top image via SIA.