SINGAPORE, 10 February 2021: Singapore Airlines has reinstated services to Dubai, Moscow and Munich, while it will launch its first flight to Phuket under the SQ brand, 4 March, when the route to the popular Thai island destination transfers from SilkAir to SIA.
In its looking forward notes attached to its financial
results for the third quarter ending 31 December SIA forecasts that by April
total passenger capacity will level out at around 25% of pre-Covid-19 levels.
Based on current schedules, the group expects to serve around 45% of the
destinations that it served before the crisis.
The integration of SilkAir’s operations with Singapore
Airlines will begin in earnest 4 March 2021, when the first SIA 737-800 NG
aircraft operates on the route to Phuket. SIA said the merging of Silk Air into
the parent airline should “deliver
greater economies of scale for the group and allow it to deploy the right
aircraft to meet the demand for air travel as it returns.”
The group fleet currently consists of 185 aircraft. The
passenger network is currently supported by about 64 aircraft. All seven
freighters are fully used, and around 24 passenger aircraft are deployed on
The airline parked 123 aircraft, including the 33 surplus
aircraft that were impaired in the first half of the year. More aircraft will
be re-introduced into the operating fleet as the network gradually revives to
pre Covid-19 levels.
During the third quarter ending 31 December 2020, SIA served
38 destinations up from 31 at the end of September 2020. SilkAir increased the
destinations served to eight, up from six, while Scoot’s network remained
unchanged with 17 destinations. By the end of December, the group’s passenger
network covered 54 destinations including Singapore, compared to 43 three
SIA is the first airline in the world to offer a new pilot
service for the digital verification of Covid-19 test results and vaccination
information. This is based on IATA’s Travel Pass framework, which aims to allow
travellers to easily and securely manage their travel. SIA also partnered with
Collinson to pilot a one-stop online solution for Covid-19 pre-departure
testing for passengers, as part of our ongoing efforts to provide customers
with a more seamless travel experience.
The aviation sector in Singapore has been given priority in
the country’s vaccination exercise. This reflects the sector’s importance and
the crucial role that SIA Group plays in both Singapore’s economic recovery and
the fight against the Covid-19 pandemic. More than 90% of the operating crew in
all three airlines have signed up for the vaccination.
On the financial front, fund-raising efforts in the first
nine months of the year continue. SIA issued its first USD-denominated bond in
January 2021 raising USD500 million (or SGD666 million). To-date, SIA has
successfully raised approximately USD13.3 billion in additional liquidity since
the beginning of the financial year. Discussions on sale-and-leaseback
transactions are at an advanced stage.
SIA continues to have access to more than USD2.1 billion in
committed credit lines, along with the option to raise up to USD6.2 billion in
additional mandatory convertible bonds before the Annual General Meeting in
As for the future, the airline warned that the resurgence of
Covid-19 infections as well as the spread of more transmissible strains of the
virus continue to weigh on international air travel, as border controls and
travel restrictions tighten in many countries.
“But in line with Singapore’s progressive re-opening, the
group expects to see a measured expansion of the passenger network over the
Reporting its financial results for April to December 2020,
SIA Group confirmed the operating loss for the nine months to December 2020
stood at SGD2,194 million, a reversal of SGD3,056 million from the profit of
SGD862 million for the same period last year, as travel demand deteriorated
sharply since the start of the financial year.
For the full report on the financial results to the end of
the third quarter see: https://www.singaporeair.com/saar5/pdf/Investor-Relations/Financial-Results/SGXNET/bu-q3fy2021.pdf