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Even before the pandemic, SIA business is less than great, it fact it is lousy. It did ok only on 2 occasions,
i) when there were far fewer competitors long long long ago
ii) when oil prices were extremely low
Travel will resume for sure but the future earnings for the next decade may or may not be able to cover the current hole.
Unless other airlines decides to call it a day and they can make meaningful profits with the increased demand and that oil prices are not too high. All in, it is a very uncertain future. As many airlines are national carriers and can be considered an essential part of a country, governments will bail them out if they can afford to. A drastic permanent drop in supply is unlikely. So a recovery in demand does not automatically translate to good business. It may well improve from extremely bad to bad.
i) when there were far fewer competitors long long long ago
ii) when oil prices were extremely low
Travel will resume for sure but the future earnings for the next decade may or may not be able to cover the current hole.
Unless other airlines decides to call it a day and they can make meaningful profits with the increased demand and that oil prices are not too high. All in, it is a very uncertain future. As many airlines are national carriers and can be considered an essential part of a country, governments will bail them out if they can afford to. A drastic permanent drop in supply is unlikely. So a recovery in demand does not automatically translate to good business. It may well improve from extremely bad to bad.