By Karamjit Kaur, Aviation Correspondent

SINGAPORE Airlines (SIA) will cut staff pay by 10 per cent after unveiling a net loss of $307 million in the April-June quarter - only its second-ever quarterly loss. It had recorded a net profit of $358.6 million in the same quarter last year.

The pay cuts, set to affect an estimated 12,000 staff, are based on a formula linked to losses agreed with staff unions.

Battered by an economic downturn that has dealt a severe blow to first- and business-class traffic in particular, the airline now fears it could end the financial year on March 31 in the red.

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