Singapore Airlines posted its first loss since the SARS health crisis in 2003. Loss for the first quarter of 2009 to 2010 year amounted to SDR $271 million, versus a profit of $265 million previously. Meanwhile regional carrier SilkAir (a subsidiary) incurred a loss of $3 million over a profit of $10 million. SIA Cargo was in the red at $104 million, down from a profit of $5 million during the prior period. The airline in a press release dated July 30, 2009, attributed the losses to the global economic downturn, the outbreak of influenza A (H1N1), and fuel hedging losses of $287 million, compared to gains of $349 million during the corresponding period the previous year. The company plans to cut back on non-fuel costs through reducing staff expenses by $60 million and negotiating with vendors to reduce costs. Traffic and Capacity
Passenger and air cargo traffic in September 2009 continued to nosedive from the same period last year, in line with the airline's planned 12 percent reduction in capacity, the termination of flights to three destinations in the U.S., India and Canada, and the transfer of its operations in Hyderabad, India, to SilkAir. Passenger carriage (measured in revenue per passenger mile) fell 7.9 percent year on year, resulting in a 4 percentage point increase to 80.9 percent in passenger load...