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Job cuts could be in the pipeline for Singapore Airlines (SIA), which is now overstaffed for current demand, experts said yesterday.
SIA could also try to cut costs in other areas, or possibly receive additional government support to tide it over the crisis, they added.
The airline had last week announced a net loss of $1.12 billion in the quarter ending June 30 – its worst quarterly showing. It also said it is reviewing the shape and size of its network over the longer term, given the impact of Covid-19 on air travel.
The International Air Transport Association has said it will take until 2024 for global passenger traffic to return to the level last year.
Mr Nicholas Wyatt, head of research and analysis in travel and tourism at analytics firm GlobalData, said the recovery of international flights depends on how quickly the pandemic can be brought under control, but “there are few signs that this is happening”.
But if airlines cut jobs excessively, they will be shorthanded should the market rebound quicker than expected, he added.
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