By Massita Ahmad
SINGAPORE, May 14 (NNN-BERNAMA) — Singapore Airlines’ (SIA) group operating profit declined 94.5 per cent in the financial year ended March 31, 2020 to S$59 million, predominantly attributable to the impact of the COVID-19 pandemic on the aviation industry in the fourth quarter.
The Singapore national carrier’s revenue, meanwhile, fell 2.1 per cent to S$15,976 million, primarily on lower flown revenue while net loss for the year was S$212 million.
In a statement today, SIA said the prospects for a recovery in international air travel in the months ahead depend upon when border controls and travel restrictions ease.
“The group will maintain a minimum flight connectivity within its network during this period, while ensuring the flexibility to scale up capacity if there is an uptick in demand,” it said.
In the meantime, SIA said the demand of essential goods such as medical supplies, pharmaceuticals and fresh foods still exceeds air freight capacity on many key lanes due to the sharp reduction in bellyhold capacity.
“This is expected to sustain cargo revenue for the near term. We will also continue to pursue charter opportunities, while closely monitoring for changes in demand,” it said.
As fuel prices are likely to remain weak in the near term, the group expects to see further fuel hedging losses.
The group said it will keep a close watch on market developments amid current uncertainties before entering into any additional hedges.