SIA predicts yearly loss for Q1 FY2021

The group is currently anticipating negative operating cashflows.

Singapore Airlines expects to post a net loss for the full year ending 31 March brought about by fuel hedging losses, an SGX filing revealed.

The group is currently anticipating operating cashflows to remain negative during the ongoing quarter. Additional hedging losses may be expected come Q1 FY2021 due to prevailing weak fuel prices since the beginning of April, and SIA is planning to monitor developments first before entering into any more hedges.

Moreover, SIA and SilkAir have extended their combined capacity cuts of around 96% until end-June, whilst Scoot is awaiting around 98% of capacity cuts.

The company continues to undertake steps to mitigate costs and preserve cash, including capacity cuts to meet demand, pay cuts of up to 30% by the entire management team, and directors volunteering a 30% cut in fees, to name a few.

They are also in talks with aircraft manufacturers to adjust their delivery stream for existing orders, and are undertaking the rights issues as announced on 26 March to build liquidity and bolster the balance sheet.

Additional details will be provided on 14 May when the unaudited financial results for Q4 and full year FY2020 will be announced.