As the world reopens, is it time for Singapore's travel stocks to shine?

The world is reopening after more than two years of Covid-19 and battered travel-related stocks are finally getting a lift from the return of travellers.

Aviation and hispitality stocks on the Straits Time Index have rebounded from the lows hit during the depths of the pandemic, after Singapore reopened its borders. With more countriers easing travel curbs, the worst is likely over.

For Singapore Airlines (SIA), the national carrier is looking set for a turnaround as it narrowed losses in the financial year that just ended. Analyst expect the airline to return to profitability on an annual basis this year.

There also remain doubts about the return of travel in the longer run, particularly the business segment which is a key source of revenue of airline. Now, the question is can companies ensure that cost inrements will be the same proportions as revenue growth so that margins will not be compressed?