SIA shares ascend 5% on upbeat aviation forecast

The national carrier saw its shares rise 5% at the start of the week, following positive comments from Singapore Transport Minister Ong Ye Kung.

  • Singapore Airlines (SGX: C6L) shares are up over 5% since Monday (08 February)
  • Stocks rallied after Singapore Transport Minister Ong Ye Kung said travel and border restrictions could soon be relaxed if vaccination certifications are introduced
  • The group also posted its third quarter results last week, in which passenger carriage grew 45% on a quarterly basis
  • Trade SIA shares, long or short, with an IG account today

SIA share price: the latest

Singapore Airlines’ (SIA) share price has rallied over 5% since the start of the week.

Shares have been rallying on the back of increased optimism around the recovery of the aviation sector.

Civil aviation authorities could soon relax travel and border restrictions should there be vaccination certifications in place, Singapore Transport Minister Ong Ye Kung told Bloomberg Television on Monday (08 February 2021).

‘That is really the light at the end of the long tunnel,’ he said, adding that while he was hopeful about the opening of some travel corridors, he is still not ‘holding his breath’ for a V-shaped recovery in the sector.

SIA shares closed at S$4.39 on Tuesday (09 February) - up 1.39% for the day.

SIA Group’s passenger carriage grew 44.8% on quarterly basis

The group also reported its third quarter 2020/2021 financial results last Thursday (04 February).

International air travel demand remained severely constrained in the quarter, as border controls and travel restrictions continued to be in place in many countries amid new waves of the Covid-19 infection, SIA said in a press release.

As a result, the SIA Group’s passenger carriage shrank 97.6% year-on-year. When compared to the previous quarter, passenger carriage grew 44.8% on the back of a 90.8% increase in capacity for the third quarter.

Group revenue fell S$3.404 billion (-76.1%) year-on-year to S$1.067 billion during the third quarter, as all three passenger airlines within the group recorded a sharp drop in passenger flown revenue due to low traffic.

This was partially offset by improvements in cargo flown revenue, as the global airfreight capacity crunch continued to provide strong support for both load factors and yields.

For the quarter ended 31 December 2020, SIA Group reported a net loss of S$142 million, a deterioration of S$457 million against the same period a year ago.

What is the forecast for the next few months?

Looking ahead, the group said it expects to see a ‘measured expansion’ of its passenger network in the coming months, in line with Singapore’s ‘progressive re-opening’.

This is despite the resurgence of Covid-19 infections as well as the spread of more transmissible strains of the virus, which it acknowledged continues to weigh on international air travel, as border controls and travel restrictions tighten in many countries.

‘We will continue to monitor the status of travel restrictions and adjust our capacity accordingly to meet the traffic demand,’ the company said.

It noted that airfreight capacity also remains constrained due to the steep reduction in passenger flights, which has affected the global bellyhold cargo capacity.

Nevertheless, while cargo demand has tapered off after the traditional year-end peak period, strong fundamentals and healthy Purchasing Managers’ Index readings across many key export economies will continue to support cargo demand in the coming months.

The group concluded that it remains ‘well positioned to navigate the current uncertainties’.

How to trade SIA shares with IG

Are you feeling bullish or bearish on SIA’s stocks?

Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

  1. Create a live or demo IG Trading Account, or log in to your existing account
  2. Enter <Singapore Airlines> in the search bar and select the instrument
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.