Coronavirus: SIA to slash capacity by half, will 'urgently take steps to further cut costs'

Singapore Airlines said, without giving details, that it is actively taking steps to build up its liquidity.
Singapore Airlines said, without giving details, that it is actively taking steps to build up its liquidity.ST PHOTO: LIM YAOHUI

SINGAPORE - Singapore Airlines is cancelling more flights across its network amid what it describes as "an unprecedented time in the airline industry".

In an announcement on Tuesday (March 17), SIA said the latest suspensions mean that the airline will operate only 50 per cent of the capacity that had been originally scheduled up to end April.

"Given the growing scale of the border controls globally and its deepening impact on air travel, SIA expects to make further cuts to its capacity", the airline added.

Chief executive officer Goh Choon Phong said: "We have lost a large amount of our traffic in a very short time, and it will not be viable for us to maintain our current network.

"Make no mistake - we expect the pace of this deterioration to accelerate. The SIA Group must be prepared for a prolonged period of difficulty."

SIA said, without giving details, that it is actively taking steps to build up its liquidity.

The SIA Group will also consult the unions once again "as it urgently takes steps to further cut costs".

Additional measures will be announced when they have been firmed up, the airline said.

Airlines around the world are facing dwindling travel demand amid the travel restrictions. The coronavirus outbreak has led companies to scale back on business travel and discouraged tourism.