Hedging Strategy and Financial Analysis of Singapore Airlines
DOI:
https://doi.org/10.54691/bcpbm.v30i.2462Keywords:
Corporate Background, Financial Analysis, Fuel Hedge.Abstract
Due to the disturbances in the tourism industry, the Covid-19 pandemic precipitated a wave of economic recession around the world. Consequently, many airlines change their operation portfolio to control costs and maintain market competitiveness. This paper examines the changes in SIA's fuel hedging strategy during this disaster and the gains and losses it generated to the group. The group's background, financial state and share price serve as the foundation for analysis. Furthermore, the paper further examines the possible future changes in SIA's fuel hedging strategy based on the group's recovery from the disaster and adjustments to the group's business strategy.
Downloads
References
Sadi, M. A., & Henderson, J. C. (2000). The Asian economic crisis and the aviation industry: Impacts and response strategies. Transport Reviews, 20(3), 347-367.
Abate, M., Christidis, P., & Purwanto, A. J. (2020). Government support to airlines in the aftermath of the COVID-19 pandemic. Journal of air transport management, 89, 101931.
Amankwah-Amoah, J. (2020). Note: Mayday, Mayday, Mayday! Responding to environmental shocks: Insights on global airlines’ responses to COVID-19. Transportation Research Part E: Logistics and Transportation Review, 143, 102098.
Cui, S., & Li, Z. (2022). Airlines Benchmarking Analysis based on Financial Performance-Emirates, Southwest Airlines, Singapore Airlines and Lufthansa. Academic Journal of Business & Management, 4(2).
Berghöfer, B., & Lucey, B. (2014). Fuel hedging, operational hedging and risk exposure—Evidence from the global airline industry. International Review of Financial Analysis, 34, 124-139.
Morrell, P., & Swan, W. (2006). Airline jet fuel hedging: Theory and practice. Transport Reviews, 26(6), 713-730.
Treanor, S. D., Rogers, D. A., Carter, D. A., & Simkins, B. J. (2014). Exposure, hedging, and value: New evidence from the US airline industry. International Review of Financial Analysis, 34, 200-211.
Baxter, G. (2021). An Assessment of Singapore Airlines Environmentally Sustainable Energy Management. International Journal of Environment, Agriculture and Biotechnology, 6, 6.
Cheong, M. L., Chong, U. M., Nguyen, A. N., Ang, S. Y., Djojosaputro, G. P., Adiprasetyo, G., & Gadong, K. L. (2021). Singapore Airlines: Profit recovery and aircraft allocation models during the COVID-19 pandemic.
Kobbernagel, F., Tangsgaard, S. R., & Sørensen, C. (2018). Fuel Hedging in the Airline Industry
Russell, W. S. (2020). 'Hedging their jets'-does fuel hedging create advantages for airlines?. Journal of Asia Entrepreneurship and Sustainability, 16(5), 140-168.
Downloads
Published
Issue
Section
How to Cite
