Scoot bleeds US$19.72 million in two years
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Scoot, Singapore Airlines' long-haul budget carrier, has opened its books for the first time and the picture is not pretty. It revealed losses of more than S$25 million (US$19.72 million) in less than two years.
The red ink comes amid intense competition among Asia- Pacific carriers - both full-service and budget - seeking a slice of a growing market.
"It's been pretty challenging" for carriers that are grappling with overcapacity as a result of airlines adding too many flights, said UOB Kay Hian's aviation analyst K. Ajith.
This has brought yields and margins down and affected Scoot as well, he said.
The airline, which flies from Singapore to 12 places in Australia, North-east Asia and Southeast Asia, including Bangkok, has also been affected by Thailand's political instability, which has unnerved some travellers.
A slowdown in the China market could dent its performance further, added Ajith.
The disappearance of Malaysia Airlines Flight MH370 in March, which was carrying mainly Chinese travellers, has hit Singapore because Chinese tourists who visit Southeast Asia typically cover Singapore, Malaysia and Thailand.
Scoot and Nok Air have formed a joint venture to operate NokScoot.
