Why I am optimistic about SIA development in the coming quarters

Hello Mooers!

With many countries opening after the COVID pandemic, SIA ( $SIA(C6L.SG)$, $SINGAPORE AIRLINES(SINGF.US)$ ) will definitely face increasing competition from its peers. Also, SIA has decommissioned some of its older planes, and this will affect its passenger capacity unless its modernized fleet is able to fill up the gaps.

Besides more capacity from other airlines and its smaller fleet size, the current situation in Eastern Europe and the Middle East may have resulted in rising fuel costs. This may probably reduce its earnings in the coming quarters.

However, I continue to look forward to buying the dips when the SIA share price drops to my target price range.

Why? 

It is because one of the reasons includes the rebound in passenger traffic in North Asia. This will help to drive up its passenger capacity. Also, SIA has hedged its projected fuel consumption until 2025, which will help offset the rising fuel costs. Let's not forget that its smaller, modernized fleet will also require less maintenance. Who knows, in the near future, the price of SIA shares may hit more than S$15, just like it did in 2007?

So, are Mooers optimistic about SIA development in the next quarter?