Singapore Airlines reports first quarterly loss in six years
31 Jul 2009
Adverse industry conditions, coupled with spreading swine flu virus and unfavourable fuel hedges have dragged Singapore Airlines to its first quarterly deficit since 2003. A Q1 loss of S$307.1 million ($212.6 million) compares to an S$358.6 million ($248.72 million) profit in the same quarter of 2008-09.
Group revenue for the quarter ended 30 June dropped 30.5% to S$2.87 billion ($1.99 billion) even as expenses came down 15.8% to S$3.19 billion ($2.21 billion). Though it saved S$1.14 billion ($790.71 million) on fuel prices compared to last year, it lost S$287 million ($199 million) on fuel hedges.
An operating loss of S$319.3 million ($212.47 million) also was a reversal from the S$343.2 million ($238 million) earned in the year-ago quarter.
SIA's cost saving measures should result in savings of S$60 million from employee-related expenses in the fiscal year ending 31 March 2010. It said it also is "continuing its efforts to eliminate wastage and duplication and to negotiate with vendors to reduce rates."
SIA took delivery of two A380-800s and four A330-300s while decommissioning three 747-400s. It operated 107 passenger aircraft as of June 30.
Load factor dropped 5.1 points to 71.6%.
The company said that if the "adverse business conditions" currently facing airlines should continue, it may report a full-year loss.
