Singapore Airlines: first ever annual loss? But despite devastation, well prepared

Singapore Airlines (SIA) reported its first quarterly net loss in six years, as weak demand stemming from the global economic slowdown, and excess capacity, particularly in cargo markets, weighed heavily on the carrier. The airline’s passenger yields slumped 17.7% in the three months ended 30-Jun-2009, with cargo yields falling an alarming 33%. This occurred despite the carrier simultaneously slashing capacity by double-digit percentages. [1012 words]

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This report contains the following subheadings:

• Passenger yields falling off a cliff
• Comparison to 1Q2004-05: A very different airline today
• Cargo yields fall off a mountain
• Well prepared for storm
• Outlook: First loss since 1972 on the cards

This report contains the following charts and tables:

• Singapore Airlines’ passenger yield (SGD cents/pkm): 1Q2002-03 to 1Q2009-10
• Singapore Airlines’ passenger yield growth (% change year-on-year): 1Q2003-04 to 1Q2009-10
• SIA key figures: Comparison between 1Q2004-05 and 1Q2009-10 (SGD)
• SIA’s cost items: 1Q2004-05, 1Q2008-08 and 1Q2009-10 (SGD)
• Singapore Airlines’ cargo yield (SGD cents/ltk): 1Q2002-03 to 1Q2009-10
• Singapore Airlines’ cargo yield growth (% change year-on-year): 1Q2003-04 to 1Q2009-10