Singapore Airlines will fly the first Boeing 737-800NG absorbed from the integration of its SilkAir regional unit on its inaugural mission on March 4 on a route to Phuket, Thailand, SIA Group said Thursday. The company noted the date as it reported a $142 million net loss in its fiscal third-quarter 2021 earnings release. SIA announced its intention to integrate SilkAir with the mainline airline in 2018 ahead of a three-year “transformation plan” designed to ensure the group emerges “stronger and fitter” from the Covid-19 crisis.
Operating a fleet of 185 passenger and cargo jets, SIA now flies only 64 of the airplanes due to Covid-related market suppression. It uses all seven of its freighters and has deployed 24 of its passenger jets on cargo-only services.
During the quarter, SIA gradually expanded its operations by reinstating services to key cities and mounting additional frequencies to existing destinations. At the end of December 2020, SIA served 38 destinations including Singapore, compared with 31 at the end of September 2020. SilkAir increased the destinations served to eight from six, while low-cost subsidiary Scoot maintained 17 destinations throughout the quarter. By the end of December, the group’s passenger network covered 54 destinations including Singapore, compared with 43 three months ago.
The group’s cargo network consisted of 66 destinations at the end of December 2020, up from 62 three months earlier. SIA last month reinstated services to Dubai, Moscow, and Munich and plans to reintroduce Phuket as a SilkAir destination the month ahead of next month’s integration of SilkAir into the mainline.
New schedules show that the group’s total passenger capacity will reach 25 percent of pre-Covid levels at the end of April when it expects to serve some 45 percent of the points to which it flew before the crisis.
“The resurgence of Covid-19 infections as well as the spread of more transmissible strains of the virus continue to weigh on international air travel, as border controls and travel restrictions tighten in many countries,” said SIA in a statement. “Nonetheless, in line with Singapore’s progressive re-opening, the group expects to see a measured expansion of the passenger network over the coming months.”
SIA has raised $13.3 billion in additional liquidity since the beginning of the financial year. Discussions on sale-and-leaseback transactions have reached an advanced stage, it added. The group continues to have access to more than $2.1 billion in committed credit lines, along with the option to raise up to $6.2 billion in additional mandatory convertible bonds before its annual general meeting in July.