Singapore Airlines (SIA) shares took a hit on May 16 in the wake of investor concerns that rising costs will dent what has been a recordbreaking period for the carrier.
The stock opened at $6.90 and climbed to $6.94 in intraday trade before sliding to close at $6.73, down eight cents or 1.2 per cent for the day with 20.6 million shares changing hands.
Several analysts at a briefing on May 16 a day after the airline announced record full-year earnings - noted the challenges ahead, and projected a fall in operating profit due to pricing and cost pressures.
They expect yields to ease as the air travel industry normalises and rivals lower fares to fill seats. Costs are expected to rise with more flight restorations and new airlines launching services.
SIA chief commercial officer Lee Lik Hsin told the briefing that passenger yields had fallen over the past six months while additional capacity at other carriers would exert further pressure, raising doubts among analysts that the airline could repeat the 24 per cent growth in net profit in this financial year.
Greater pressure is expected on its low-cost carrier Scoot, where operations are largely regional.
Diese Geschichte stammt aus der May 17, 2024-Ausgabe von The Straits Times.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der May 17, 2024-Ausgabe von The Straits Times.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Pritam Singh's trial over alleged lies to Parliament slated to start in Oct
The trial of opposition leader and Workers' Party (WP) chief Pritam Singh is slated for October and November, court records on May 31 show.
S'pore units of Shell, ExxonMobil among 9 firms critical to national security under new law
Singapore issued a list of nine companies that will need to seek government approval for changes in their ownership or leadership, among other things, as they are deemed critical to national security interests.
Ingebrigtsen dives to dramatic 1,500m win
Jakob Ingebrigtsen ensured a raucous end to a thrilling Diamond League meet in front of his home fans in Oslo by hurling himself over the line to snatch victory in the men's 1,500m in 3min 29.74sec on May 30.
PATIENCE THE DIFFERENCE
Loh blows early leads in both sets to lose a frustrating quarter-final to Li
RAGING RUBLEV IMPLODES IN PARIS
World No. 6 is the highest men’s seed to exit Roland Garros after loss to Italian Arnaldi
ANIKI, A LATE SILVER BULLET FOR 70YO KHOO
From forlorn hope at netting elusive feature win, veteran trainer suddenly gets a shot
Ringgit overcomes slow start in 2024 as inflows rise
The Malaysian ringgit has raced ahead of all its Asian peers in the past three months and, if market watchers are right, the move is set to gain traction.
US economy grows less than estimated in Ql as consumer spending cools
The US economy grew less than initially estimated in the first quarter of 2024 as consumer spending cooled, the government reported on May 30.
Over half of S'pore CEOs have pushed sustainability down in their to-do list: Poll
Decarbonisation has taken a back seat among corporate leaders in Singapore, a quarterly survey by EY has found.
Govts, people must join hands to fight deepfakes: Panellists
They need to share and learn from one another; technology not the silver bullet