SG Wealth Builder

To make money. To build wealth. To preserve wealth.

SIA share price to endure another lost decade?

Sign up as member and get your free copy of investment report on SGX stocks!

SG Wealth Builder Membership

Email notification

If you are not ready to join as member, you may opt to enter your email address to receive notifications of new posts by email. Note that you can only view excerpt of the articles as non-member.

Join 3,104 other subscribers

Singapore Airlines’ CEO Goh Choon Phong should be at a loss for words. Days after collecting the prestigious Skytrax’s World Best Airline Award for the fourth time, the CEO must be watching in horror as SIA share price plunged by as much as 5.5% on 27 July 2018, presumably due to the poor Q1FY18/19 financial results.

The poor financial results came on the back of announcements of integration of SIA Cargo and SilkAir into parent airline and merger of Tiger Airways and Scoot. Despite the extensive restructuring exercise among its subsidiaries, it certainly seems that there was not much improvement in resource synergies, revenue growth or even cost reduction. What a wasted effort indeed!

SIA share price

Wretched performance

As the saying goes, one man’s poison is another’s meat. While oil and gas companies like Keppel and Sembcorp had been struggling in the aftermath of the oil price’s collapse, SIA share price had been flying high, surging from $9.80 in early 2017 to as high as $11.56 in May this year. But the magical form of SIA share price is as good as it gets as recent uptick in crude oil prices returned to haunt the premium airline.

The reason for the gravity defying performance of SIA share price was because of low fuel cost in 2017. Fuel is always the highest expense component for the airlines. And SIA is no different. As there is no index for jet fuel, the price is directly pegged to crude oil. Therefore, rising crude oil price would inevitably hurt SIA’s bottom-line.

But what riled investors was really the much touted [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

Sign up as member and receive a bonus investment report on Singapore stocks! The membership benefits include:

1) Access to the latest premium articles of SG Wealth Builder
2) Email notifications of latest blog articles
3) Access to Wealth Forum for investment ideas and discussion
4) Free bonus investment report
5) Request for coverage on stocks, insurance and other personal financial topics
6) Comment in articles and Wealth Forum

Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.

Monthly Subscription

You may sign up for the monthly subscription for only $19.99 per month. You can choose to cancel the subscription after one month with no penalty.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Magically yours,

SG Wealth Builder

Updated: July 29, 2018 — 11:33 pm

Leave a Reply

SG Wealth Builder © 2018 Frontier Theme
Powered by WishList Member - Membership Software
%d bloggers like this: