Cash call should keep SIA flying, but earnings to nosedive: CGS-CIMB

SINGAPORE (March 30): While the capital raising move backed by Temasek Holdings should strengthen Singapore Airlines (SIA) for the long haul, the flag carrier’s earnings will likely nosedive ahead, according to CGS-CIMB.

This comes on the back of expected fuel hedging losses as the airline has hedged Brent crude and jet fuel at a strike price of US$58 a barrel and US$74 a barrel.

This is on top of more extensive global travel restrictions than previously anticipated and a deduction for imputed convertible bond yields.

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