Singapore Airlines cuts flights by 96% due to coronavirus

Singapore Airlines (SIAL.SI) has announced it will will cut its fleet capacity by 96%, ground almost all of its fleet and raise funds, the carrier said.

The action is taken in response to coronavirus travel restrictions.

Fhares of the airline, majority owned by Singapore state investor Temasek, were down more than 9% by outstripping losses in the broader market .STI that was down 7% and on track for its biggest daily drop since October 2008.

The company has drawn on its credit lines in the last few days to meet immediate cash flow requirements and is in talks with financial institutions over future funding needs, it added.

The carrier faces S$2.5 billion of marked-to-market losses by the end of March from having taken out fuel hedges at high prices, the broker said.

The airline said it will focus on protecting jobs.