The outlook for Singapore Airlines has gone from bad to worse
https://www.channelnewsasia.com/new...-sq-singapore-airlines-travel-bubble-13009928
The SIA Group carried only 38,000 passengers in the June quarter, a staggering 99.6 per cent decline compared to the same period last year, with an average load factor of only 10.2 per cent compared to 83.4 per cent a year ago.
There are currently only 11 weekly flights from Singapore to mainland China, including four by the SIA Group and seven from Chinese carriers.
The fuel hedge ineffectiveness charge became necessary as SIA had to adjust capacity plans for the remainder of the current fiscal year due to the slower than expected recovery of the international market, resulting in a significantly lower projected fuel uplift and therefore a higher than initially expected fuel hedge surplus.
The S$464 million is on top of a S$710 million fuel hedge ineffectiveness charge for the current fiscal year that SIA was required to incur in March, when it was anticipating a faster recovery of the international market.
The SIA Group will likely incur an annual loss of roughly S$3 billion for the year ending March 2021. It incurred a S$212 million loss in the year ending March 2020 – SIA’s first ever annual loss – due to the initial fuel hedge ineffectiveness charge.