Singapore Airlines Ltd (SGX: C6L) closed Friday's session at S$6.70, a slight decline of 0.15%, with trading volume reaching 8.94 million shares. The stock has traded between S$5.90 and S$7.63 over the past 52 weeks.
Supply Chain Headwinds Intensify
Recent discussions at the Singapore Airshow have cast a spotlight on persistent supply chain delays, which are now translating into higher operational costs for airlines. Industry leaders warned that delivery and maintenance bottlenecks for aircraft and engines could become a lasting challenge, forcing carriers to secure spare parts and lease aircraft at elevated prices.
ST Engineering's Jeffrey Lam suggested these disruptions might represent a "new norm," citing ongoing delays from major manufacturers Airbus and Boeing. Scoot CEO Leslie Thng noted the budget carrier had to procure additional spare engines at its own expense, while IATA Director General Willie Walsh described the situation as "very frustrating" for the industry.
Financial Implications and Market Focus
These constraints directly impact airline margins, compelling operators to enter costly leasing agreements, increase maintenance spending, and stockpile parts to maintain fleet availability. The International Air Transport Association (IATA) estimated that extended use of older aircraft cost the global industry approximately $11 billion in 2025.
Investors are also monitoring fuel costs, as jet fuel prices linked to crude oil could further pressure profitability, especially on long-haul routes. The convergence of these cost factors presents a significant risk, particularly if consumer demand softens and reduces revenue per passenger.
Singapore Airlines, which operates both its premium flagship service and the Scoot budget unit, is viewed as a key barometer for Singapore's travel sector. The company is scheduled to release its third-quarter business update for the 2025/26 fiscal year after the market closes on February 24.