SIA posts a record net loss, remains ‘uncertain’ about recovery

On May 19, 2021, Singapore Airlines (SIA1) (SINGY) published its financial results for the fiscal year of 2020/21, reporting a record net loss amid decreased demand in international air travel due to the ongoing COVID-19 pandemic.

In the fiscal year 2020/21 that ended on March 31, 2021, Singapore Airlines (SIA1) (SINGY) reported a net loss of SUSD 4.3 billion (USD 3.2 billion), a decline compared to a net loss of SUSD 212 million (USD 159 million) in the fiscal year of 2019. Passenger traffic number slumped by 97.7% amid travel restrictions across the globe. 

Following the financial report, SIA’s group revenue fell by 76.1% year-on-year due to the plunge in passenger flown revenue across Singapore Airlines (SIA1) (SINGY), SilkAir, and Scoot – the three passenger airlines within the group. However, higher cargo demand cushioned the plunge in low passenger traffic numbers. The cargo revenue rose by SUSD 758 million (USD 568 million) compared to 2019.

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The group swung into an operating loss of SUSD 2,5 billion (USD 1.8 billion) in FY 2020/21, a sharp decline compared to the SUSD 59 million (USD 44 million) operating profit recorded in FY 2019/20. 

The outlook of the international air travel recovery, according to Singapore Airlines (SIA1) (SINGY), still continues to be dimmed by the ongoing COVID-19 pandemic and various travel restrictions.

“Even though mass vaccination exercises are in progress in most of our major markets, the prognosis for the global airline industry remains uncertain. While domestic markets have recovered in some countries, international air travel remains severely constrained,” read SIA’s statement.