Singapore Airlines Ltd has said that it will defer over S$4 billion ($3.01 billion) of spending on Airbus SE and Boeing Co planes after reaching agreements with the aircraft manufacturers to delay deliveries.
It will convert 14 of its Boeing 787-10 orders to 11 additional 777-9s to meet its fleet needs beyond the financial year ending in March of 2026, the airline said in a statement.
"The agreements with Airbus and Boeing are a key plank of our strategy to navigate the disruptions caused by the Covid-19 pandemic," Singapore Airlines chief executive Goh Choon Phong said.
"They allow us to defer capital expenditure and recalibrate the rate at which we add capacity, aligning both with the projected recovery trajectory for international air travel," he said.
The airline will cut capital spending plans by S$2.2 billion in the 2020-21 financial year ending on March 31, S$1.7 billion in 2021-22 and by a more limited amount in the following three years.
Singapore lacks a domestic travel market and international travel is expected to take until 2024 to rebound to 2019 levels, according to industry estimates.
Third Quarter Net Loss
Last week, Singapore Airlines recorded a S$142 million net loss for the third quarter as passenger numbers plunged by 97.6% due to the pandemic, though its cargo business held up better given a tight freight market.