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