Strong Q3 cargo demand helps SIA to narrow operating loss to US$248m
SINGAPORE Airlines Group narrowed its third-quarter operating loss, as a stronger cargo performance helped offset revenue loss from the pandemic-led collapse in passenger travel demand
08 February 2021 - 19:00
The airline group announced that for the three months ending December 31, 2020, the group's operating loss amounted to SGD331 million (US$248 million), compared with the SAD449 million operating profit it made the previous year.
However, this loss marked a better performance than the previous quarter, where it reported an operating loss of SAD826m million.
SIA Group reported a net loss of SAD142 million. It made a SAD315 million net profit for the same period the previous year.
Revenue for the quarter fell three-quarters to SAD1.07 billion, as the group's airlines - comprising SIA, regional unit SilkAir, as well as low-cost subsidiary Scoot - all reported sharp decreases in passenger traffic.
The three carriered just 195,000 passengers for the quarter, which was 98 per cent lower year on year. Group traffic, as measured in RPKs, was also down 98 per cent on capacity cut 86 per cent.
Still, the group noted that the global airfreight capacity crunch - a result of drastic cuts in flights globally - has led to improvements in cargo load factor and yields.
'In response to the continued strong demand for pharmaceutical and e-commerce shipments, and an uptick in general cargo demand, SIA added capacity by stepping up the frequency of passenger aircraft operating cargo-only flights and through the resumption of more passenger services. The utilisation of the freighter fleet was also maximised to deliver more cargo capacity,' SIA added.
Expenses for the period fell 65 per cent to SAD1.4 billion, as SIA's cost-saving initiatives - including capacity cuts - took effect. Net fuel cost fell 77 per cent, to SAD274 million, thanks to capacity cuts and lower fuel prices, reports London's Air Cargo News.
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