Sales dropped 79% to S$851 million and traffic measured by revenue passenger kilometres sank 99.5%.
The Group reported that Singapore Airlines carried out 99.4% fewer passengers than in Q1 2019, while its subsidiaries' SilkAir and Scoot's passenger revenue dropped by 99.8% and 99.9%, respectively. However, this was countered by a strong demand for urgent movements of personal protective equipment, pharmaceuticals and fresh foods, resulting in an improvement in cargo load factor.
Singapore Airlines said it was in talks with aircraft manufacturers to delay deliveries and progress payments to reduce cash outflows at a time when the majority of its fleet of 220 planes remains parked.
The company said Wednesday its group-wide spending fell S$2.01 billion (-51.6 percent) from previous year to $1.88 billion, which it attributed to lower net fuel costs and non-fuel expenditure. "Mark-to-market losses of S$464 million on ineffective fuel hedges have been recognised this quarter", it said.
Since the start of the year, SIA Group has increased its liquidity by approximately S$11 billion from a rights issue, financing on its A350-900 and 787-10 aircraft, as well as new lines of credit and short-term unsecured loan.
Singapore Airlines (SIA) Group has sunk into a net loss of $1.12b in Q1 FY2021 from a net profit of $111m in Q1 FY2020, an announcement revealed. On the low-priced front, Scoot operated a minimal network with flights to Hong Kong and Perth, and subsequently reinstated flights to Guangzhou, lpoh, Penang and Kuching. "We will continue to optimise the usage of our freighters to capture demand opportunities and supplement our cargo capacity through the deployment of cargo-only passenger flights when justified", SIA said. The airline has reached an agreement with Airbus and is in negotiations with Boeing. "This will help to moderate fleet growth in the near term", it said.
'Demand for air travel evaporated as travel restrictions and border controls were imposed around the world to contain the spread of the virus, ' SIA said.
Passenger capacity at the end of the second quarter is forecast to be about 7 per cent of the level before Covid-19.
Singapore Airlines said its passenger capacity may still be less than half pre-coronavirus levels by the end of its fiscal year next March, and that the recovery in global travel is slower than initially expected.
It is reviewing its fleet size and mix, and expects to incur a material impairment of the carrying values of its older-generation aircraft, particularly the A380 aircraft, which would account for about S$1 billion.
Meanwhile, Bloomberg Intelligence aviation analysts James Teo and Chris Muckensturm estimated in a 15 July note that SIA's Q1 net loss as well as "drag" from S$124 million in one-off costs due to the liquidation of its NokScoot joint venture in Thailand.