A first quarter loss of S$307.1 million was recently reported by Singapore Airlines, which came as the first such loss since the SARS crisis in 2003.

The airline specified that due to the global economic slowdown and the outbreak of H1N1 flu, a drop in cargo and passenger demand appeared. The loss also deepened due to fuel hedging.

Via a statement, the airline said: "The net loss for the three months ended June 30 compared with a net profit of S$358.6 million a year earlier. Revenue fell 30.5 per cent to S$2.87 billion from S$4.13 billion a year ago."

The airline also said that many steps have been taken to contain costs, including a freeze on hiring, unpaid leave, wage cuts and deferment of non-essential projects.
The airline thinks that estimated savings of S$60m for the current financial year can be made by cutting the staff costs.

Furthermore, the capacity, to match demand during the quarter, has also been adjusted by the airline, by way of suspending services and cutting frequencies on various routes.

It said: "Though the price of jet fuel is less than half its peak last year, it remains volatile." However, it added, "Hedging losses are expected to taper off over the course of the financial year as they are settled."