To The Moon

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.

Despite that, investor sentiment soured. The stock closed at S$6.80, down 1.45% from the previous day. Its 52-week range is S$5.768 to S$7.630.

My Take: Watching, Not Buying (Yet)

Personally, I don't think the earnings were terrible. Sure, they didn't meet the market's expectations, but I wouldn't call it that bad either. In fact, I still view SIA as a fundamentally solid company with an excellent brand, strong regional presence, and a reputation for top-tier service.

But I'm not rushing to buy the dip.

Here's why: even after the recent drop, SIA's share price is still relatively high compared to where it's been 1 year ago. The stock has enjoyed a strong run-up, and while this pullback might seem like a bargain to some, I don't think we've reached an attractive entry point yet.

For me, a price below S$5.30 would be much more compelling, especially if broader market weakness or further earnings downgrades create additional downward pressure.

I'm not bearish on SIA. I just prefer to buy value, not momentum.

Bottom Line: Solid Airline, Premium Price

Singapore Airlines is still a world-class company. It has weathered crises, pivoted during the pandemic, and retained its global reputation. But the current valuation doesn't offer the margin of safety I'm looking for as an investor.

So while others might be tempted to "buy the dip" now, I'll be sitting on the sidelines a little longer—watching, analyzing, and ready to board when the price feels right.