Singapore Airlines (SIA) has had a rough week—its share price has tumbled for three straight days, and investors are feeling the turbulence. SIA (C6L.SI) The trigger? A weaker-than-expected earnings report for the first quarter. SIA's net income plunged 59% to S$186 million for the three months ending June 30. The drop was largely due to losses from Air India Ltd. and lower interest income. On the surface, this looks like a sharp decline and the market responded accordingly. Yet, if you dig a little deeper, the story isn't all bad. Revenue actually rose by 1.5%, reaching S$4.79 billion, supported by record travel volumes and resilient cargo demand. So while the profit headline disappointed, operationally, the airline is still flying strong in terms of passenger activity and global demand.
SIA Tumbles for 3 Days! At What Price to Buy the Dip?
Singapore Airlines’s profit slumped in the first quarter as losses from Air India Ltd. and lower interest income weighed on the company’s financial results. Net income tumbled 59% to S$186 million ($145 million) in the three months ended June 30, the carrier said in a statement Monday. Revenue rose 1.5% to S$4.79 billion, bolstered by record travel volumes and strong cargo demand. -------- With SIA free falling, what's your buy-the-dip price? How do you view the profit decline?
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