Singapore Airlines narrows annual loss, says outlook improving

By Jamie Freed

Reuters Singapore Airlines Ltd SIA on Wednesday posted a narrower annual loss of S962 million 694.08 million, at a time when demand remained low due to the pandemic, but said the outlook was improving as travel restrictions were lifted.

SIAs loss in the 12 months ended on March 31, its third consecutive year in the red, was an improvement from the S4.3 billion loss a year earlier that included impairment charges on 45 older aircraft.

The latest figure was in line with the average forecast of a S968.5 million net loss from 11 analysts polled by Refinitiv.

Annual revenue doubled to S7.6 billion.

SIA said passenger capacity would average around 61 of prepandemic levels in the first quarter and 67 in the second quarter as the outlook improved.

“Key markets around the world have further eased travel restrictions, supporting a strong recovery in demand in air travel across all cabin classes,” SIA said in a statement.

It added that forward sales, when measured as a percentage of available seats, were approaching prepandemic levels for the three months up to August.

Singapore on April 1 took a major step forward in reopening by allowing fullyvaccinated travellers to enter the country without the need to quarantine or take an onarrival test for COVID19, as well as lifting all daily arrival quotas. From April 26, it removed the need for predeparture tests.

Passenger traffic at Singapores Changi Airport has doubled in May compared with March to stand at around 40 of preCOVID levels, the countrys transport minister said on Tuesday.

SIA, like Hong Kongbased rival Cathay Pacific Airways Ltd, lacks a domestic market. But Singapore has been reopening at a much faster pace than Hong Kong, allowing SIA to restore prepandemic capacity levels more quickly.