Singapore Airlines burns 3.2bln USD in just two months because of COVID-19

Singapore (VNA) – Singapore Airlines has spent 4.4 billion SGD (more than 3.2 billion USD) over the last two months as a result of the COVID-19 pandemic that has forced governments to close borders to stem the spread of the coronavirus.

The airline said since mid-June, it has spent 1.1 billion SGD on operating expenses, the settlement of maturing fuel hedging trades and ticket refunds following the cancellation of flights in view of the continuing border controls and travel restrictions.

Another 2 billion SDG has been used to repay a bridge loan while 0.2 billion SGD has been applied toward aircraft purchases. Approximately 0.9 billion SDG was to service debt, which included the redemption of the airline’s 10-year 500-million-SDG Fixed Rate Notes in July and repayment of funds previously drawn under certain lines of credit.

In June, the airline raised 8.8 billion SGD through its rights issues as the airline continues to suffer from the lockdown in international aviation.

Since the start of the COVID-19 pandemic, Singapore Airlines has taken steps to significantly reduce its monthly expenditure. To curb costs, it has slashed salaries and put staff on unpaid leave as it operates at less than 10 percent of capacity.

The Singaporean carrier posted a loss of 1.85 billion SGD in the first half of this year as the pandemic wiped out passenger traffic. Cathay Pacific lost 9.9 billion HKD (1.27 billion USD) and Qantas 1.96 billion AUD (1.4 billion USD)./.