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SIA Bleeds
- Thread starter ckmpd
- Start date
Anyway . Better do safe distancing from SIA share ... While it is not uncommon for many international carriers to use fuel hedging tools to reduce the risks of price volatility for a 12-month time horizon, very few carriers buy fuel more than two years in advance. Southwest Airlines and Japanese carriers Japan Airlines and All Nippon Airways are among the carriers hedging fuel over a period of three years or longer, an analyst at Morgan Stanley told the Singapore Business Times.
The airline has said it expects potential fuel hedging losses for 2.6 billion Singapore dollars for the next fiscal SIA . $2.6 bio loss in oil hedge next year . The other big hole is aircraft leasing. Nobody lease from them now till next year .
First tranche of funds raised..$8.8 billion . $3.5 bio from rights issue
$5.3 bio from MCB .
$2.6 bio/$$8.8 bio . That is some 30% of the money used to patch up the big hole . Surely next 2 years unlikely to be profitable or paying dividends. So avoid this counter ..
The airline has said it expects potential fuel hedging losses for 2.6 billion Singapore dollars for the next fiscal SIA . $2.6 bio loss in oil hedge next year . The other big hole is aircraft leasing. Nobody lease from them now till next year .
First tranche of funds raised..$8.8 billion . $3.5 bio from rights issue
$5.3 bio from MCB .
$2.6 bio/$$8.8 bio . That is some 30% of the money used to patch up the big hole . Surely next 2 years unlikely to be profitable or paying dividends. So avoid this counter ..
Yes, SIA has been very aggressive on fuel hedging. With fuel at $40 per barrel, SIA can expect to take a big hit on hedging losses. With negligible revenue and committed expenses, the coming financial report shd show more bleeding
good for themCouple of my friends riding on TG, UG and RS...glove makers.
I agree with you. On paper, SIA is bankrupt. The saving grace is SIA is a strategic asset which the SG govt cant afford to let it go bust
As SIA has no money, the right thing to do is for the Chairman, CEO and mgmt staff to take a deep pay cut
Yes, SIA is too large and strategic to fail hence the 'rescue' package which can go up to 14B and beyond if necessary. I reckon it is losing around slightly over 100M per month or slightly over 1 B per year at current conditions although they are reintroducing some additional flights. But at this rate you can forget about profits for around 2 years or so.
Isn't this already happening at all levels?
I am looking forward to the 2Q 2020 report. I sense that it will lose a lot of money...probably more than $1Billion
no...
SIA CEO's pay is still very high
https://www.onlinecitizenasia.com/2...his-pay-was-1-4m-with-total-5-5m-pkg-last-fy/
Taking 30% pay cut of $5.5m is still unacceptably high when the stewardesses are jobless
Many airlines will go bankrupt
Maybe that is the idea of COVID-19 which is to weed out the weak humans and businesses.
good point..also to let the earth rest from mankind's abuse
The mess that everybody is in was not caused by a virus. It was caused by a ridiculous over reaction to an infection that is no worse than influenza. If everybody had just carried on and concentrated on treating the sick while allowing everyone else to carry on with their lives the pandemic would be over by now.
That's exactly what I meant in my post. Not the disease but the handling, intentional or otherwise of the event.
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