SIA shares drop, but airline unlikely to be financially impacted by severe turbulence incident

3 weeks ago 45

Updated

May 23, 2024, 11:21 AM

Published

May 23, 2024, 11:16 AM

SINGAPORE - Shares of Singapore Airlines fell on the first day of trading after a deadly turbulence-hit flight, but brokers said there was no major selling pressure on the counter.

The shares were down 6 cents or 0.9 per cent mid-morning to $6.70, with a modest 4.2 million shares traded.

This comes in the wake of severe air turbulence on SIA flight SQ321 from London to Singapore on May 21, which resulted in one death and dozens of passengers injured.

The plane, which fell some 6,000 feet within minutes, recovered altitude and made its way to Bangkok’s Suvarnabhumi Airport, where its distressed passengers disembarked. Except for the severely injured, all passengers have been flown back to Singapore over the past two days.

While noting that air turbulence is a common phenomenon on international flights, analysts are nevertheless trying to ascertain the potential financial impact on SIA from this incident, which resulted in one fatality from a heart attack.

Preliminary conclusions suggests that any financial liability will be minimal, if at all, ...

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