Singapore Airlines (SIA) said Monday that it will slash 96% of its capacity as demand for air travel evaporates due to coronavirus-related movement restrictions.
Under the measure, 138 of the 147 aircraft in the airline’s fleet, including those of group carrier SilkAir, will be grounded.
Singapore Airlines’ budget carrier, Scoot, will ground 47 of its 49 aircraft.
Travel restrictions imposed by governments around the world to slow the spread of the virus present “the greatest challenge that the SIA Group has faced in its existence,” the airline said in a statement.
“The resultant collapse in the demand for air travel has led to a significant decline in SIA’s passenger revenues,” it added.
“It is unclear when the SIA Group can begin to resume normal services, given the uncertainty as to when the stringent border controls will be lifted,” it also said.
As it aims to shore up its liquidity, the airline said it is discussing with aircraft manufacturers a postponement in the delivery of aircraft on order and deferments in payments, while implementing salary cuts for management.