Singapore Airlines reports S$1.12 billion net loss in Q1

Used to be one of Singapore's crown jewel, its share prices is really going down the drain due to COVID-19 and it doesn't seem to look like it is going to recover anytime soon looking at the airline industries all halting almost more than 90% of their primary activity which is flying.

Revenue for the group plunged 79.3 per cent year-on-year to S$851 million in the first quarter ended Jun 30, while expenditure dropped 51.6 per cent to S$1.89 billion.

Overall passenger carriage fell 99.5 per cent - 99.4 per cent for Singapore Airlines, 99.8 per cent for SilkAir and 99.9 per cent for Scoot. 

Source: Channel NewsAsia

Looking at its weekly chart (skipping the daily one for now), it does not seem to show any signs of recovery and I do not think one should try to buy any rebound at this point in time. It is now at its all time low and likely going lower with no means to really determine where is the bottom. We will need to look at the other sources like pharma companies on their capabilities to push out the vaccine to see a potential recovery in SIA.

In terms of going down and out, I would think it may not be the case as it has Temasek holdings as its backing and recently issued rights to secure more funding to stay afloat. Worst case scenario might be to nationalize SIA which may allow it to avoid public scrutiny. SMRT back then was a good example of such an approach.

SIA Weekly

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