SIA Group crashes to $3.5b net loss in Q2

This was due to drop in passenger carriage and non-cash impairments.

Singapore Airlines (SIA) Group recorded a $3.5b net loss in Q2 FY2021, its latest financial results stated, extending the $1.12b loss reported in Q1.

The airline continues to face a tough operating environment amidst a sharp decline in passenger carriage and significant non-cash impairments that include the $1.3b impairment charge on the removal of 26 older generation aircrafts. SIA also incurred a $1.9b operating loss in Q2 from the $413m operating profit in the same period last year.

Meanwhile, the group’s revenue also crashed 80.4% YoY to $1.6b in Q2 FY2021.

The fall in revenue was amidst the drop in passenger flown revenue as international travel restrictions severely impacted the airlines. However, this was partially offset by stronger cargo flown revenue which went up $274m as countries sought to restore global supply chains.

Group expenditures also decreased 55.8% YoY to $3.5b, which was largely attributed to lower non-fuel expenditure and net fuel cost. Non-fuel expenditures were down 54% YoY, following wide-ranging cost-saving measures.