Shares of Singapore Airlines Ltd. climbed 1.34% to S$6.79 during Monday's afternoon session, finding support from a decline in benchmark oil prices. The drop in Brent crude, which fell 1% to $67.38 a barrel, alleviates near-term pressure on jet fuel expenses, a major operational cost for airlines.
The broader Straits Times Index moved higher, gaining 0.57% on the day. The positive sentiment for transport stocks was tied to renewed diplomatic talks between the U.S. and Iran, which helped cool immediate concerns over potential oil supply disruptions.
All eyes are now on the company's forthcoming third-quarter business update, scheduled for release on February 24. The report is expected to provide critical insights into passenger demand trends, pricing power, and how costs are evolving relative to the carrier's capacity.
While the dip in oil offers a tailwind, analysts caution that the cost benefit is not guaranteed. Fuel purchasing schedules and existing hedge positions can mute the immediate impact. Furthermore, the oil market remains sensitive to geopolitical headlines, meaning any renewed tensions could quickly reverse the recent price decline and pressure airline margins anew.
