Smart money is on Singapore Airlines to build on its stellar results

SINGAPORE Airlines (SIA) on Tuesday (Feb 21) reported a record set of interim financial results that beat analysts’ forecasts “significantly”. Is this the peak for the airline’s profits? Or can the company, and its stock, keep soaring?

The carrier, flush with cash of S$15.4 billion, appears likely to redeem the mandatory convertible bonds (MCBs) issued in 2021 before they mature in 2030. It even has the capacity to reward shareholders with a bumper dividend.

Net profit for the third quarter of its FY2023 (the company has a March year-end) was S$628 million, achieved on the back of its highest-ever quarterly top line of S$4.8 billion. The numbers are especially compelling given that the airline was running at a group passenger capacity of only 80 per cent of its pre-pandemic levels in December.