First quarter loss in six years
Singapore Airlines (SIA) has reported a €150m (S$307m) loss for its first financial quarter.
The carrier, which blamed the recession, swine flu and fuel hedging, said it was its first quarterly loss since the SARS outbreak in 2003.
SIA said group revenue for the three months to June 30 fell by 30% to €615m (S$1,260m) with both passenger and cargo affected.
Group spending in the quarter also dropped by 15.8% to €1,556m (S$3,191m).
It said its operating loss for the quarter was €155m (S$319m) compared to a €167m (S$343m) in 2008.
The airline said it had put a freeze on hiring, offered unpaid leave and imposed wage cuts to reduce costs.
It said it had union agreement to make further cut in salaries.
These measures would save the carrier €29m (S$60m) in the current financial year.
The group said it expected losses on fuel hedging would "taper off" over the course of the year
It also expected the cargo market to stabilise.
But it added: "The Group's first quarter performance reflected the adverse business
conditions for airlines.
"If these conditions continue, the Group expects to make a loss for the full year."
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