With SQ Girls and their iconic kebeyas, Singapore Airlines is undoubtedly Singapore’s most recognisable brand. On the global stage, it is respected and admired as one of the best airlines in the world.
And closer to heart, at home, stepping on board an SQ flight at the end of an overseas trip is enough to make even the most hardened of Singaporean hearts feel a twinge of pride.
But as you’ve probably already read, Covid-19 has dealt our national carrier a devastating blow. With the imposed travel bans and reduced export activities, it’s no surprise that those in aviation are among the biggest casualties of this economic crisis… And shareholders who are still holding on for dear life to their SIA shares are left picking up the pieces.
Disclaimer: This article contains information on SIA share prices as well as its recent performance trends. It is meant as a guide for readers only, not financial advice. Please practise your own discretion when making investment decisions.
SIA (C6L) overview
|Year of incorporation||Airlines|
|Total Market Cap||$7.499.07 million|
|Historical share price||Prices fluctuated between $10 and $12 from mid 2015 to mid 2018 before declining to the >$9 region. Covid-19 sent prices plunging to a low of $4.48.|
|Current share price||$6.170|
|Current dividend yield||4.8%|
|Dividend yield 5-year average||2.911%|
Note: The figures are accurate at the time of writing (Apr 2020), but due to the nature of this industry, this information changes very frequently. For the latest updates, do check the SIA (C6L) SGX listing.
SIA (C6L) Guide: Share prices, dividends and more
SIA was already struggling with uncertain growth prior to Covid-19. Facing stiff competition from budget airlines, SIA’s high operating costs, high debt and low profit margin (typical in the airline industry) also made it vulnerable to negative cash flow.
From mid 2015 to mid 2018, share prices fluctuated in the $10 to $12 range, but from mid 2018 to just before the pandemic, they had fallen to $9+.
Their performance had been slowing down since 2011, but they were still profitable until 2019. This year, however, the Covid-19 epidemic dealt SIA share prices a heavy blow. The airline has reduced their capacity by 96% and grounded almost all of its fleet.
The lowest SIA share prices have gone so far is about $4.48.
Their current dividend yield is 4.8%, but given the massive difficulties facing the airline, it’s unlikely they will be able to maintain this rate. Those hoping to invest for dividend income may want to avoid this stock.
About SIA (C6L): Market news and updates
Incorporated in 1972, Singapore Airlines is a member of Star Alliance and considered one of the world’s most prestigious airlines. Their planes fly to 105 airports in 37 countries and the company currently employs about 15,943 people.
Singapore Airlines Group also participates in other services through its 20+ subsidiaries, including SIA Engineering Company, which does aircraft maintenance, repair and overhaul, and Singapore Airlines Cargo, which manages cargo on SIA flights. They also have two subsidiary airlines, regional carrier SilkAir and budget airline Scoot.
SIA reported a 60.4% decline in passengers in March due to travel restrictions imposed to stem the tide of Covid-19. Recently, SIA obtained a $13 billion financing package, the biggest pandemic lifeline of any airline so far. In short, the company is gearing up for its biggest financial challenge in its history.
SIA is majority-owned by Temasek Holdings, Singapore’s sovereign wealth fund. That’s a good thing, as Temasek Holdings was a major source in their recent funding lifeline.
Although SIA did well until the 2000s, SIA was already an iffy stock in the recent decade, even before Covid-19. Right now, it is probably best to steer clear of it altogether unless you can afford to hold on to it for a long, long time.
The effects of Covid-19 on the airline industry have been nothing short of devastating, and until we know how long travel restrictions will stay in place, the future of SIA shares looks bleak.
Even when the demand for air travel eventually recovers, the airline still faces an arduous road to recovery.
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