SQ Trading Update
 

The following update was provided by SIA on Friday with a rather grim outlook on its forward business:

Key Highlights:

- SIA and SilkAir have extended their combined capacity cuts of approximately 96% until the end of June 2020, while Scoot is expecting capacity cuts of approximately 98%.
- The collapse of fuel prices in March 2020 has led to fuel hedging losses on contracts maturing in the final quarter of FY2019/2020.
- The unprecedented scale of the capacity cuts by the SIA Group has resulted in the SIA Group being in an over-hedged position with respect to the expected fuel consumption for FY2020/2021.
- SIA Group expects to report a material operating loss for the final quarter of FY2019/2020.
- To report a small operating profit, but a net loss, for full year FY2019/2020.
- SIA Group currently expects operating cashflows to remain negative during the ongoing quarter (April to June 2020).
- Additional fuel hedging losses may be expected in the first quarter of FY2020/2021.

Link to the trading update provided by SIA:
https://links.sgx.com/FileOpen/Tradi...&FileID=609810