Singapore Air Bracing for Another Record Loss With Travel Halted

(Bloomberg) -- Singapore Airlines Ltd., consistently voted one of the world&rsquo s best airlines by Skytrax, is poised for another hefty quarterly loss after the coronavirus left it flying a tiny fraction of its usual number of passengers.

The airline warned this month that it expects a material operating loss in its fiscal first quarter. It already suffered a record net loss of S$732 million ($530 million) in the three months through March, when it was hit by fuel-hedging losses as well as a collapse in demand triggered by the outbreak. That left the carrier with its first annual loss in its 48-year history.

The net loss could widen to S$1.2 billion for the quarter through June and revenue may slump 87% because of a 96% drop in capacity, according to Bloomberg Intelligence analysts James Teo and Chris Muckensturm. Fuel-hedging losses will again take a toll, and this time there are also S$124 million in liquidation costs for NokScoot Airlines Co. Singapore Airlines owned a 49% stake in the low-cost Thai carrier that collapsed in June.

The Covid-19 pandemic continues to torment the global aviation industry, which is forecast to take at least another three years to recover from the plunge in traffic caused by tight border controls and a  reluctance to travel.