With borders opening up and people desperate to leave to travel, $SINGAPORE AIRLINES LTD(C6L.SI)$ has reported its annual revenue to have doubled to S$7.6 billion over the past year.
Analysts attribute this success to the launch and expansion of the Vaccinated Travel Lanes (VTL) in collaboration with multiple travel destinations such as Switzerland, UK and Bali, which enabled people to travel without the need for quarantine, encouraging people to get vaccinated so that they can travel once again.
Resumption of air-travel has also provided job opportunities for Singaporeans. With the frequency of flights expected to increase over the year, cabin crew recruitment has resumed after a 2year hiring freeze. Additionally, SIA pilots who initially took a 50 per cent dock of their basic pay when the pandemic started, will gradually be restored to pre-pandemic levels over the course of the year.
With many positive signs of economic improvement for SIA in Q1 2022, could SIA return to pre-pandemic levels by the end of this year? Analysts say it is unlikely that things will return to pre-pandemic status so quickly, with passenger capacity expected to reach 61 per cent of pre-pandemic levels for the first quarter, before improving to 67 per cent in the second quarter.
Despite this, SIA is improving significantly and could be a good stock to buy and hold in the next few years.
if you wish to leverage on this consider using DLCs:
$SIA 5xShortSG240306(DRBW.SI)$
Comments