Careful Expansion of Singapore Airlines Network

Singapore Airlines, SIA, Silk Air, airlines, network, ASEAN

Singapore Airlines will add frequencies to Australia in 2016

A slower than expected recovery in passengers’ traffic has conducted to a loss of S$1.12 billion (US$817.5 million) for Singapore Airlines. This explains why the airline is coming back relatively slowly in the market. In Southeast Asia, only a dozen of destinations are served now by SIA and its affiliate Silk Air.

Singapore Airlines went into the red for the 1st quarter of its financial year covering the period from April1st to June 30. SIA net loss reached over US$817.5 million (S$1.12 billion) is the airline’s largest quarterly loss on record due to the covid-19 pandemic. Revenue for the group plunged to S$851 million, a 79.3% drop from the $4.1 billion when compared to the same quarter of 2019.  The airline reduced its expenditure by 51.6% thanks to capacity cuts but also lower fuel cost. .

SIA explains the catastrophic result to “an evaporated demand for air travel as travel restrictions and border controls were imposed around the world to contain the spread of the virus.” Passengers traffic collapsed consequently by 99.5% for the three airlines of the group-SIA, Silk Air and Scoot.

The group’s passenger capacity by the end of the next quarter is projected to represented only 7 per cent compared to the same quarter of 2019. By the end of its financial year, airlines’ previsions remain gloomy as it only predicts less than half of pre-Covid-19 levels. “We are reviewing the shape and size of our network over the longer term, given Covid-19 and its impact on our passenger traffic and revenue, which will provide clarity on fleet size and [network],” highlighted the airline when announcing its results.

As countries in ASEAN and around the world struggles to reopen their borders, SIA network program for the period from September to November remains a shadow of what it used to be. Both SIA and Silk Air will fly to 27 destinations instead of over 100 prior to the pandemic. The carrier plans to fly to six destinations in the Pacific (it will however drop Brisbane from October ), seven destinations in Europe as well as to Los Angeles. The airline just announced today to resume flights to Perth in Western Australia.

Except for a few destinations, the carrier will only propose one to three frequencies per week on most of its intercontinental routes. SIA will also link Singapore to Hong Kong, Osaka Kansai, Seoul, Shanghai-Pudong and Taipei in Northeast Asia while Silk Air flies once a week to Chongqing.

In Southeast Asia, SIA and its regional affiliate serve only seven destinations with surprising gaps in its network. They are for example no flights being planned to and from Thailand or from and to Manila. However, both SIA and Silk Air have flights to Cebu, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, Medan and Phnom Penh. Only Kuala Lumpur is served by a daily flight while Jakarta benefits of five weekly frequencies.