SINGAPORE Airlines (SIA) narrowed its first-quarter net loss after a boost in passenger and cargo flown revenue, and the absence of non-cash impairment charges for the NokScoot liquidation.

 

Net loss for the three months ended June 30, 2021 was S$409.2 million compared with S$1.1 billion a year ago. Loss per share amounted to 9.2 S cents compared with 50.8 cents a year ago.

 

Revenue rose 52.2 per cent to S$1.3 billion. The group said passenger traffic grew on the back of a calibrated increase in passenger capacity, which rose to 28 per cent of pre-Covid-19 levels by the end of the quarter.

 

The airline carried 362,000 passengers in Q1, compared with 38,000 passengers the year before.

 

A calibrated resumption in passenger flights contributed to an increase in cargo capacity and loads carried. " Overall, the strong cargo revenue performance for the first quarter reflected the healthy demand fundamentals and an ongoing capacity crunch in the sector," SIA said in a business update.

 

Group expenditure fell 16.9 per cent to S$1.6 million. Net fuel cost increased by 132.3 per cent to S$360 million.

 

As at end-June, SIA had an operating fleet of 164 passenger aircraft and seven freighters with an average age of five years and 11 months. The group said this makes it one of the youngest fleets in the airline industry, helping to improve underlying operating efficiency and lower carbon emissions.

 

Based on its current published schedules, it expects passenger capacity to be around 33 per cent of pre-Covid-19 levels in the second quarter.

 

By the end of September, the group expects to serve around 50 per cent of the points that were part of its passenger network before the onset of the pandemic.

 

" The growing pace of mass vaccination exercises across many countries provides hope for further recovery in international air travel demand. However, the risk of new variants and fresh waves of Covid-19 infections in key markets remains a concern," SIA said.

 

It noted that while overall airfreight demand is expected to be healthy in the coming months, seasonal fluctuations and tighter pandemic controls in certain locations will create short-term volatility.

 

SIA' s total debt as at end-June rose by S$719.5 million to $15.1 billion due to an increase in lease liabilities. Debt to equity ratio fell to 0.67 times from 0.90 times after shareholder' s equity increased by S$6.4 billion.

 

The group has access to S$2.1 billion of committed lines of credit that remain undrawn.