SIA Spends $4.4. Billion In 2 Months Despite Grounded Plane, Raised $8.8 Billion Through Share Sales
We all know that Covid-19 has curbed air travels out of the most business line and causing many airlines to suffer from highly damaging on financial, With the decrease in flight and letting go of staff, perhaps a lot of observers might think that it might have already eased their economical damage but the amount is far greater than what we would have imagined.
SIA in 2 months from 14 June to 14 Aug, Bloomberg quoted SIA as saying on Wednesday (19 Aug) has spent around $4.4 billion. Of the $4.4 billion, $1.1 billion went to expenditure including operating expenses, showing that it costs a lot to run an airline, even though its capacity is greatly reduced. A portion of that $1.1 billion was also spent on refunding customers’ plane tickets as their flights were canceled due to Covid-19. Another part of that $1.1 billion was burnt on maturing fuel-hedging trades.
Amount spent almost as much as combined losses by 3 airlines
To give some perspective, Hong Kong’s Cathay Pacific lost $1.75 billion in the 1st half of 2020. Australia’s Qantas Airways lost $1.9 billion in the same period. That means the 3 airlines lost a combined $5.5 billion in 6 months. SIA’s expenditure of $4.4 billion in just 2 months is just $1.1 billion short of that.
