SIA cuts 96% of capacity until end-April

It saw a fall in passenger revenue as demand for air travel collapsed.

Singapore Airlines will be cutting 96% of the capacity that had been originally scheduled up to the end of April as border controls further tightened around the world to stem the COVID-19 pandemic, according to a press release.

Also read: SIA halves capacity

This will result in the grounding of around 138 of 147 SIA and SilkAir aircraft. The group’s Scoot unit will also suspend most of its network, grounding 47 of its fleet of 49 aircraft.

“It is unclear when the SIA Group can begin to resume normal services, given the uncertainty as to when the stringent border controls will be lifted,” the group said.

Also read: SIA's losses could amount to over $1b in FY2021

SIA expressed that it has seen a significant decline in passenger revenues as demand for air travel collapsed.

To build up its liquidity and reduce capex and operating costs, SIA has also implemented measures such as discussions with manufacturers to defer upcoming aircraft deliveries and salary cuts for its management, in addition to drawing on its lines of credits.

The company’s directors have agreed to a cut in their fees, and a voluntary no-pay leave scheme up to certain management positions.