$SINGAPORE AIRLINES LTD(C6L.SI)$Time to buy?
Financials have definitely improved for SIA lately due to increased passenger traffic. But it is still having a negative free cash flow, all thanks to the weaker first half of fiscal year 2022.
As a result, the likelihood of near term dividend payout is close to none and this will likely persist until the FCF turns positive at the very least.
Another factor weighing the business down is theimpact of inflation. High crude oil prices will affect operating costs adversely and inflation will likely reduce consumer discretionary spending eg. Travel if it persists.
Personally, I feel that near term improved financials will help in stock price but looking at the macro-economic factors such as inflation, I will be more cautious in my investments with SIA.
Invest safe!
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