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


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 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.

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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.

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