Singapore Airlines (SIA) shares tumbled nearly 10 per cent on Feb 21- a day after the carrier warned that higher fuel prices and increased operating costs could cloud its outlook.
The stock closed at $6.67, down 70 cents or 9.5 per cent, with 39 million shares traded.
Brokers said the market reacted negatively to the carrier's higherthan-expected operating expenses in the last quarter of 2023 even though revenue growth remained solid.
Cargo business remains a drag, fuelling concerns that the return to normal may be slower than expected due to the conflict in the Red Sea.
However, Ms Ada Lim, an analyst at OCBC Investment Research, expects SIA to post a record performance for the financial year to March 31 on the back of robust travel demand and its ramp-up in capacity since major economies reopened after Covid-19.
"Regional airlines have struggled with manpower shortages and other operational issues, which may allow SIA to enjoy higher-for-longer passenger yields vis-a-vis preCovid levels," Ms Lim said.
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