Cargo could blunt some of the pain for SIA's Q1 earnings, but recovery remains elusive

FATTER yields in the cargo business could be a bright spot for Singapore Airlines (SIA) when it reports its first quarter update next week.

The national carrier has already flagged a material operating loss, marked-to-market losses from fuel hedges and a one-off charge totalling S$123.6 million from the liquidation of Nok Scoot.

Shukor Yusof, founder of aviation consultancy Endau Analytics, estimated the group's net loss could total S$770 million to S$800 million for the three months ended June 30, 2020.

But SIA's cargo business could blunt some of the pain. Cargo yields have been pushed north by a capacity crunch in the cargo market and a surge in demand for medical gear and equipment.

Dismal passenger…

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