SIA could be biggest winner as larger airlines lead gains from air travel rebound

WITH Taiwan, Japan and Hong Kong having dropped or eased border restrictions, airlines are ramping up capacity to capture pent-up demand for these hot tourist favourites during the year-end holidays.

Investors should, however, be cautious about jumping into airline stocks. Analysts said that many of the region’s listed airline groups could continue to struggle for a while, as they face hurdles rebuilding their businesses.

Pangolin Aviation Recovery Fund director Mohshin Aziz, for one, told The Business Times that the likes of Cathay Pacific would require time to pick up the pieces, as shown by peers operating in geographies that have already thrown open their borders.