SIA: may track overnight weakness in European airlines, as the threat of volcanic ash from an Icelandic volcano shut European airspace.
Shares in German airline Lufthansa plunged by 4.6%, while Air France-KLM fell >4% at the opening of trading, the biggest loser on the Paris stock market. Intl Airline Group (IAG), the owner of British Airways and Iberia, plunged 3.6% in early trading, and Scandinavian airline SAS dropped 3%, both falling more than their rptve
The Grimsvoetn volcano began erupting late on Saturday, with the first ash expected to begin hitting Europe on Tuesday. Denmark has already closed some airspace over Greenland and Norway said it will cancel flights on Monday to the country's Arctic archipelago of Svalbard. Concerns that the ash could damage aircraft engines led authorities to cancel flights as a precaution...
Recall, in Apr ‘10 Iceland's Eyjafjoell volcano erupted, spewing a massive cloud of ash that caused the planet's biggest airspace shutdown since World War II with more than 100k flights cancelled and 8m passengers stranded. When news of the flight cancellations were first announced, SIA gapped down 2% at the market open and closed 3.6% down.
The majority of Street has Hold ratings on the stock, following the lackluster 4Q operating performance. Recent TP range btwn $12.35 – 19.00.