SINGAPORE – Singapore Airlines (SIA) announced on Monday (May 3) that the company has raised around $ 2 billion through sale-and-leaseback deals on 11 of its aircraft to bolster liquidity as it has the pandemic-induced slump in travel.
The airline said it will continue to look for other ways to increase liquidity after signing contracts with four parties for seven Airbus A350-900s and four Boeing 787-10s.
Rivals like Cathay Pacific Airways and Qantas Airways did similar deals during the pandemic.
“The additional liquidity from these sale-and-leaseback transactions strengthens our ability to manage the effects of the Covid-19 pandemic from a position of strength,” said Goh Choon Phong, CEO of SIA, in a statement.
SIA said it had access to more than $ 2.1 billion of undrawn credit lines and an option to raise up to $ 6.2 billion in convertible bonds ahead of its annual meeting in July 2021.
The airline lacks a domestic market and has been hit hard by the virtual cessation of international passenger traffic due to border controls and quarantine measures.
In April, SIA reported a decrease in passenger numbers of 99.6 percent compared to the previous year.
Its shares traded at $ 4.96 at 10:21 a.m. on Monday, down 10 cents, or two percent, after the last announcement.
