Singapore Airlines Group has posted a record SG$2.34 billion ($1.74 billion) Q3 loss, forcing the carrier to retire numerous aircraft and reduce other expenses.
Running at only 11% of normal capacity, in the face of sweeping border closures, Singapore Airlines has reported a 98.6% fall in passenger numbers in September.
The Group, which includes SIA, SilkAir and Scoot, will retire a total of 26 aircraft “deemed surplus to requirements” in addition to seven Boeing 777s being retired following the liquidation of NokScoot.
Singapore Airlines will retire:
- Seven Airbus A380
- Four Boeing 777-200/200ER
- Four Boeing 777-300
- Nine Airbus A320 (SilkAir fleet)
- Two Airbus A319 (SilkAir Fleet)
Although SIA Group will ditch SilkAir’s Airbus aircraft, Singapore Airlines will take on their Boeing 737-800/MAXs. These short-haul aircraft will trickle into Singapore Airlines’ fleet from Q1 2021.
The SIA Group passenger and cargo fleet will stand at 189 following the retirements. Currently, the airline’s passenger services are supported by about 39 aircraft. 143 aircraft are in storage, including 19 in the Australian desert town of Alice Springs.
Driven by a global surge in cargo demand, Singapore Airlines has opted to convert two Boeing 777-200ERs and two Scoot Airbus A320ceo aircraft to freighters; the latter of which took place in August.
The B777s, registered 9V-SWN and 9V-SWM, both had their 246 passenger seats removed to create 12% more cargo capacity on each aircraft.
Outlook for SIA Group
The SIA Group passenger network increased from 32 destinations in June to 43 by end-September. In the coming months, Singapore Airlines and SilkAir will reinstate services to Brunei, Dhaka, Fukuoka, Johannesburg, Kathmandu, Male and Penang.
Additionally, low-cost carrier Scoot will resume services to Melbourne in line with the Singaporean Government’s reopening to the entirety of Australia. Singapore Airlines will also commence a three-times-weekly service from Singapore to New York JFK from 9th November.
“Amid the uncertain and highly volatile environment, the [SIA] Group, with its portfolio of full service and low cost airlines, is ready to swiftly and decisively seize all opportunities and respond to any adverse changes that may arise”Singapore Airlines
Feature Photo by Steve Strike