SIA faces short-term pain of MCB redemptions, losses in India amid post-pandemic recovery

CHRISTMAS has come early for shareholders of Singapore Airlines (SIA).

Shares in the national carrier are up 12.7 per cent since the beginning of the year, well ahead of the Straits Times Index’s gain of 3.9 per cent. On top of that, shareholders on record as of today (Dec 12) will receive an interim dividend of 10 cents per share on Dec 22.

China has also now abruptly shifted its stance on protecting its citizens from Covid-19, and appears to be preparing to roll back restrictions that prevented people from travelling freely. This might enable SIA to add back flight capacity at a quicker-than-expected pace, and maintain its currently elevated levels of profitability into next year.