I came across this article which prompted me to write about my thoughts on SIA.
Singapore Airlines (SGX: C6L) is one of the best airlines in the world and has established itself as a globally renowned brand.
Share price of SIA has dropped to a historical low of approximately $4.20 after ex-right. Any poor fella who had invested during its high late 2007 would clock a staggering return of almost -80% after holding for 12 years, excluding dividends of course.
Revenue and net income have been fairly flat over the past years. 2019 performance had only improved by a couple of percentage points over the previous year.
Free cash flow has been declining since 2017 due to increased capital expenditure on planes and spare parts. The decision of buying new planes is what I can’t quite wrap my head around and SIA has