SIA falls 4.7% after cancelling flights due to US-Israel strikes on Iran; Sats down 5.9%
26 SIA and Scoot flights between Feb 28 and Mar 7 have been called off since the conflict began
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[SINGAPORE] Shares of Singapore Airlines (SIA) and Sats fell on Monday (Mar 2) as the US-Israeli strikes against Iran led to flight cancellations over the weekend.
This mirrored a broader market rout, with the Straits Times Index closing 2.1 per cent lower at 4,890.86 points on Monday, in line with declines in key Asia markets.
Shares of national carrier SIA tumbled as much as 7.5 per cent or S$0.54 on Monday to S$6.64 at 9.20 am. The counter pared some losses and closed the day 4.7 per cent or S$0.34 lower at S$6.84, with 26.6 million shares trading hands.
Meanwhile, shares of ground handler and in-flight caterer Sats retreated as much as 6.4 per cent or S$0.25 to S$3.67 at 10.55 am. It finished the day at S$3.69, down 5.9 per cent or S$0.23, with 14.9 million shares transacted.
Global travel shock
The declines follow the cancellation of 26 SIA and Scoot flights between Feb 28 and Mar 7, after a wave of US-Israel air strikes against Iran resulted in several countries in the Middle East closing their airspaces, and airlines cancelling or diverting flights.
SIA said that two daily flights between Singapore and Dubai were cancelled between Feb 28 and Mar 7, or a total of 16 flights. Additionally, two Scoot flights between Singapore and Jeddah scheduled for Feb 28, Mar 2, 3, 5 and 7 were also cancelled.
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The air strikes have led to the shutdown of key Middle Eastern airports, including in Dubai, the world’s busiest international hub, amid one of the aviation sector’s worst shocks in recent years.
Other major airports that were closed or severely disrupted include the ones in Abu Dhabi in the United Arab Emirates and Doha in Qatar.
The national carrier said it was monitoring the Middle East situation and would adjust flight paths “as needed”. It warned that other SIA flights may be affected.
On Feb 28, the US and Israel launched strikes against Iran, pushing the Middle East into a renewed conflict which has disrupted global air travel, as well as clouded the outlook for a peaceful resolution to the West’s nuclear dispute with Teheran.
The air strikes, part of a campaign to overthrow the government of Iran, have killed the country’s Supreme Leader Ayatollah Ali Khamenei, his daughter, grandchild, daughter-in-law, son-in-law and 48 Iranian leaders.
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