SIA Group revenue fell S$3,404 million (-76.1%) year-on-year to S$1,067 million during the third quarter, as all three passenger airlines within the Group (SIA, SilkAir, Scoot) recorded a sharp drop in passenger flown revenue due to low traffic. This was partially offset by improvements in cargo flown revenue, as the global airfreight capacity crunch continued to provide strong support for both load factors and yields.
Group expenditure was down S$2,624 million (-65.2%) from last year to S$1,398 million. Non-fuel expenditure fell significantly year-on-year, by S$1,540 million (-54.7%), on the back of cost-saving initiatives such as capacity cuts and staff-related measures, as well as government support schemes. Net fuel cost declined S$933 million (-77.3%) to S$274 million as capacity cuts and lower fuel prices reduced fuel cost before hedging.
A net gain of S$63 million was recorded for the quarter in relation to fuel hedging and fuel derivatives, comprising fuel hedging losses of S$88 million, a fuel hedging ineffectiveness loss of S$36 million (arising from a further downward revision to the recovery trajectory) and fair value gains of S$187 million on fuel derivatives that had earlier been deemed to be ineffective hedges.
As a result, the Group registered an operating loss of S$331 million for the quarter, a S$780 million reversal from an operating profit of S$449 million last year. For the quarter ended 31 December 2020, the Group reported a net loss of S$142 million, a deterioration of S$457 million against last year. (US$1.00 = S$1.34 at time of publication.)
