SINGAPORE (May 22): Since its inception in 1972, Singapore Airlines (SIA) has weathered through all kinds of downturns that had impacted air travel. This included the Sept 11 terrorist attacks in 2001, the SARS epidemic in 2003 and the global financial crisis in 2008.
But the Covid-19 pandemic, which has shut down economies and grounded air travel worldwide, is proving to be the biggest challenge ever faced by the national flag carrier.
Owing to the unprecedented collapse in air travel since March, SIA’s revenue tumbled 21.9% y-o-y to $3.18 billion in the fourth quarter ended March 31, from $4.08 billion in the same period a year ago. The airline was also caught in an over-hedged position, no thanks to the plunge in crude oil prices. SIA was forced to record a fuel hedging ineffectiveness of $709.8 million.
