SIA share price (SGX: C6L) in baptism of fire!

Chinese New Year Special Offer! Will SIA share price (SGX: C6L) roar in the Year of the Tiger? In peace times, there are no dragons to slay. But this is not peace time we are talking now right now. As global economy emerges from the protracted pandemic crisis, what will the outlook be like for SIA share price in 2022?

SIA share price was actually cruising in 2021 until Delta and Omicron variants brought the counter to its knees in May and November respectively. In this respect, whether SIA share price will return to form in 2022 will depend a lot on the pandemic situation. On 4 February 2022, Singapore announced a whopping 13,208 COVID cases. The spike in cases may cause not just supply chain issue for Singapore, but also manpower disruptions for the national airline.

SIA share price

Just a caveat: it is still premature to claim that the latest infection wave would disrupt SIA’s operation and puncture the form of SIA share price in the process. Given that the 4 February report was released after market closed, it is an unknown how the stock market will react when it reopens on 7 February. Due to the countless twists and turns of the pandemic saga, analysing the outlook of SIA share price is always a tricky business.

SIA share price so bad its good!

SIA share price in explosive form

SIA share price (SGX: C6L) faces ambush from another cash call?

SIA share price rises from ashes

The latest development takes place at a very bad timing for SIA share price as the company is expected to post a strong operating result for third quarter business update. The result should be stellar as December operating results were solid. For that month, SIA carried 596,300 passengers (2020: 85,200) while SIA Cargo carried 95.8 tonnes of cargo (2020: 25.4%). The result will be unveiled on 24 February 2022, so do expect a roller coaster ride for SIA share price in the coming days.

Another indication that SIA share price may have reached a turning point is the cash flow. It seems that the management have achieved a turnaround in the cash flow issues. In the 1HFY21/22 report, there was net cash inflow of $326.9 million from operating activities versus the cash outflow of $2.69 billion last year in the same period.

Notwithstanding the encouraging signs, it is important to cover the various factors when we do a deep delve into SIA share price analysis. In this article, I will share the three factors that could possibly shape SIA share price in 2022.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in SIA before. Whether SIA share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.

SIA share price met old nemesis

Traditionally, the third quarter should be the best one for SIA due to the year-end holiday seasons. However, the upcoming earning reporting season [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.]

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Updated: February 7, 2022 — 10:48 pm

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