SIA burns half of the $8.8b raised in 2 months
About $2b was used to repay a bridge loan facility.
Singapore Airlines (SIA) burned through half of the $8.8b it raised through share sales in just two months, highlighting how carriers’ expenses keep incurring even as planes are grounded.
Of the $4.4b spent since mid-June, $1.1b was used for operating expenses, maturing fuel-hedging trades and ticket refunds from canceled flights due to the coronavirus pandemic. About $2b was used to repay a bridge loan facility, $900m to service debt and $200m to buy aircraft.
Singapore Airlines raised the funds in June after the outbreak and resulting border restrictions decimated travel demand. The airline industry is unlikely to recover fully before 2024, the International Air Transport Association said last month.
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