Turbulent fourth quarter ahead for SIA as impact of outbreak takes hold

AFTER a decent Q3 showing, SIA is likely to fly into turbulence in the fourth quarter as fall-out from the Covid-19 virus outbreak weighs down operating performance.

Its third quarter earnings results beat forecasts, with net profit up 10.9 per cent year on year to S$315 million, lifted by stronger contributions from associates and joint ventures (JVs), as well as an improved operating performance. With its three-year transformation programme starting to pay off, revenue was 3 per cent higher at a record S$4.47 billion as lower revenues from the cargo business were offset by robust passenger revenue.

Shares in SIA have retreated since the spread of the virus started escalating in January, sliding from Jan 24's close of S$8.82 to S$8.55 on Thursday. In the last 52 weeks, its shares had traded at a high of S$10.23.