Singapore Airlines To Reassess Its Fleet Plan Over 6 Months - Simple Flying

Advertisement:

Singapore Airlines is running the ruler over its fleet of 220 planes. Yesterday, the airline released its 2020/21 financial year first-quarter results. They were not pretty. Passenger carriage numbers were down 99.5%, and the airline posted an SG$1 billion net loss. As a result, Singapore Airlines is reviewing the shape and size of its network and fleet over the next six months.

Singapore-Airlines-fleet-review
Singapore Airlines is reviewing its fleet size and composition over the next six months. Photo: Getty Images

Singapore Airlines forecasts a bumpy ride ahead

Compounding the problem at Singapore Airlines are the deteriorating traffic forecasts over the short to medium term.  The airline industry is continuing to measure recovery against a 2019 traffic benchmark. But that benchmark is getting pushed further and further away. A few months ago, pundits were tipping airlines to hit the 2019 benchmark next year. Now, airlines and industry groups are looking at a two to four-year time frame.

Stay informed: Sign up for our daily aviation news digest.

While Singapore Airlines was sitting on shareholder’s equity of $17.6 billion, in addition to cash on hand of $9.6 billion, as of June 30, the airline’s view is that further cost management strategies are needed.

Singapore-Airlines-fleet-review
Right now, Singapore Airlines has access to plenty of cash. Photo: Singapore Airlines News Room

Key to that are projected adjustments to Singapore Airlines’ fleet and network. In a statement yesterday, the airline said;

“We are
Source…