Should I buy Singapore Airlines stock now?

Singapore Airlines is Singapore’s national carrier and definitely a symbol of significance. It has for many years focused on providing exceptional services to the passengers in their kebaya. It has two subsidiaries: SilkAir operates regional flights to secondary cities, while Scoot operates as a low-cost carrier. Singapore airlines has also won many best airline awards.

Someone close told me to buy some Singapore airlines stocks because it is really cheap right now and in the long run, it will definitely pick up. However I am a little hesitant about it. With limited cash in my warchest, would I really want to take this risk?

Who is to say that the business will definitely get better for airlines in the next few years. Social distancing, no meals on board, no interaction, travelling is not going to be the same anymore until a vaccine is found but even so, not everyone in the world will have access to the vaccine.

Airlines are a cyclical industry where there are peaks and valleys and are sensitive to the business cycle, such that revenues generally are higher in periods of economic prosperity As more people travel and are lower in periods of economic downturn and contraction as less ppl travel when times are bad.

In the short term, chances of recovery will be slow and even Lawrence Wong has mentioned that travelling will not likely resume in 2020. With SIA reporting operating loss and 95.1% year on year decrease of passengers in June, it will take awhile before business picks up. What is your take on it?

Disclaimer: Information published here are purely opinions or feedback and should in no way be taken as guaranteed. Readers are encouraged to do their due diligence by doing sufficient research before making any decisions based on materials