The group says it expects to report a small operating profit, but a net loss for FY19/20 due to the strong performance for the first nine months of the FY. It also expects operating cash flows to be in the red during the ongoing quarter ending June owing to the uncertainties of the pandemic.
SIA, together with its subsidiary SilkAir, have extended their combined capacity cuts of around 96% until the end of June 2020, while Scoot is expecting capacity cuts of approximately 98%.
According to SIA’s statement, it is “in negotiations with aircraft manufacturers to adjust our delivery stream for existing aircraft orders, in view of prevailing market conditions, balancing that with our longer-term fleet renewal programme”.
The airline is also in talks with various suppliers to reschedule payments.
“To build our liquidity and strengthen our balance sheet, we are undertaking the rights issue as announced on 26 March 2020,” it said.
See also: Singapore Airlines to raise $15 bil via rights issue of new shares, mandatory convertible bonds
As at 10.34am, shares in SIA are trading at 10 cents higher, or 2.3% up, at $4.50.
