$SIA(C6L.SG)isn't cutting back on its long-term growth strategy. It plans to expand its European network, launch Madrid services from October 2026, and start daily services to Western Sydney International Airport from November.SIA also continues to deepen partnerships, including its commercial cooperation with Air China.I will describe SIA in August as "strong core airline, but facing an unusually difficult earnings environment."I would not interpret SIA's recent loss as evidence that its core airline business is fundamentally weak. The underlying demand picture is actually quite encouraging as the record revenue and passenger numbers demonstrate that.
The bigger concern is that fuel costs + Air India losses are currently absorbing the benefits of that strong demand.
For a long-term investor, SIA becomes more interesting if the share price weakness starts to reflect the current earnings pressure without assuming a permanent deterioration in the core business. The two things I would watch most closely are jet-fuel prices and Air India's cash requirements.
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