Record quarter loss spurs Singapore Airlines to seek liquidity
SIA may need to decide by end of the first quarter whether to tap S$6.2 billion in convertible bonds from a fundraising announced in March.
November 10, 2020
By PLA Editor
Air & Cargo Services air cargo Air Cargo Asia air cargo freight Air Forwarding air freight Air Freight Asia Air Freight Logistics air freighter air freighting Air Logistics Asia Air Shipping Asia airlines cargo airways cargo asia cargo news Asia Pacific cargo aviation Covid-19 Singapore Airlines
Singapore Airlines Ltd. plans to raise more liquidity after posting its biggest quarterly loss of S$2.3 billion in the three months to September as international travel all but dried up, Bloomberg reports.
The airline is in advanced talks to raise funds in the debt capital market and by selling and leasing back some of its aircraft, CEO Goh Choon Phong said during a briefing on 9 November, without elaborating.
For the half-year ended 30 September, Singapore Airlines reflected S$1.3 billion in impairment charges on the removal of 26 older aircraft, whilst fuel hedging contributed to a S$563 million loss.
The airline said on 6 November it has paused fuel hedging activity since March given the uncertain pace of recovery.
Singapore Airlines has restarted some routes, including its non-stop service to New York, and the airline is increasing cargo capacity by converting some of its passenger planes to carry freight. Cargo revenue was up 28.3 percent from last year.
The carrier’s net cash and cash equivalent stood at S$7.06 billion at the end of September. CFO Stephen Barnes said the carrier may need to decide toward the end of the first quarter whether to tap the S$6.2 billion in convertible bonds from a fundraising plan announced in March.