Singapore Airlines (SIA) posted their second consecutive annual loss at S$4.3bn ($3.2bn), significantly wider than the S$212mn ($159mn) loss last financial year. The company suffered a S$1.7bn ($1.3bn) non- impairment charge on 45 surplus aircrafts. Group revenues fell 76% YoY to S$3.8bn ($2.9bn) as they saw a “plunge in passenger flown revenue across Singapore Airlines, SilkAir and Scoot – the three passenger airlines within the Group.” On the other hand, cargo revenues rose 38% YoY to S$2.7bn ($2bn). The airline also saw a mark-to-market loss of S$497mn ($373mn) on ineffective fuel hedges. Liquidity was strengthened with cash and bank balances rising by S$5.1bn ($3.8bn) to S$7.8bn ($5.9bn) as the Group’s debt-equity ratio fell from 1.27x to 0.9x. SIA plans to further issue additional mandatory convertible bonds to raise ~S$6.2bn ($4.7bn) helping navigate the crisis.
SIA’s bonds were mostly lower – its USD 3% 2026s were down 0.2 to 101.4, yielding 2.7% and its SGD 3.03% 2024s were down 0.4 to 103, yielding 1.95%.