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Singapore Airlines raises $542 mn by securing its aircraft

Singapore Airlines
The carrier has raised long-term loans by securing some Airbus A350-900s and Boeing 787-10s

Singapore Airlines has raised around $542 million as long-term loans by securing some of its Airbus and Boeing aircraft under its fleet, the media reported.

The carrier has raised the loans by securing its Airbus A350-900s and Boeing 878-10s.

So far, Singapore Airlines has raised $7.96 billion in liquidity since the start of the financial year 2020/2021.

According to Bloomberg Intelligence analysts James Teo and Chris Muckensturm, Singapore Airlines’ net loss could widen to S$1.2 billion for the quarter through June due to the coronavirus pandemic. They also said that revenue may slump by 87 percent because of a 96 percent drop in capacity.

It has already suffered losses of around S$732 million as a result of the outbreak.

Last month, Singapore Airlines revealed that it secured an additional $1 billion in credit facilities to help the carrier deal with the coronavirus pandemic.

This is in addition to the $6.32 billion it raised for a rights issue.

Singapore Airlines had raised around S$900 million through loans on some of its aircraft. Besides that, it also arranged new lines of credit and a short-term loan of around S$500 million with several banks for further liquidity.

The carrier said in a statement, “During this period of high uncertainty, Singapore Airlines will continue to explore additional means to shore up liquidity as necessary.”

Singapore Airlines cancelled most of its operations earlier this year to help curb the spread of the novel coronavirus.

A report by the International Air Transport Association (IATA) revealed that the global aviation sector would lose around $314 billion in revenue this year due to the coronavirus pandemic.

 

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