This means SIA’s aggressive price discounting to promote demand has not been able to enhance network connectivity and offset its non-profitable long haul routes.
In fact, Budget Aviation Holdings (BAH) fared better due to point-to-point traffic rather than improved network connectivity between Scoot and TigerAir.
SIA’s CEO Goh Choon Phong announced a transformational plan that would revamp the entire business but did not provide much details.
“Our sense is that SIA is still exploring options and does not have a concrete strategy to stem losses as yet,” says Ajith in a Monday report. “Details will be released within six months. SIA also indicated that it will still maintain its premium focus.”
Shares of SIA are currently trading at $9.70.
(See also: Singapore Airlines revamps business amid unyielding competition)
(See also: Singapore Airlines announces reintegration of SIA Cargo as group division)
(See also: Singapore Airlines swings to 4Q loss; dividends slashed)
