SIA falls 6% after flight cancellations following US-Israel strikes on Iran; Sats down 5.6%

[SINGAPORE] Shares of Singapore Airlines (SIA) and Sats fell on Monday (Mar 2) morning as the US-Israeli war against Iran led to flight cancellations over the weekend.

This mirrored a broader market route, with the Straits Times Index opening 2.1 per cent lower at 4,891.09 points on Monday, in line with declines in key Asia markets.

On Monday morning, shares of SIA fell as low as S$6.72 as at 9.06 am, down by 6.4 per cent or S$0.46, with 3.5 million shares trading hands.

Shares of Sats dropped as much as 5.6 per cent or S$0.22 to S$3.70 as at 9.07 am, with 1.1 million shares transacted.

This comes after the US and Israel launched strikes against Iran on Saturday, pushing the Middle East into a renewed conflict which has disrupted global air travel, as well as clouded the outlook for a peaceful resolution to the West’s nuclear dispute with the Tehran.

The air strikes led to the shutdown of key Middle Eastern airports including Dubai, the world’s busiest international hub, amid one of the aviation sector’s worse shocks in recent history.

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Closer to home, 26 SIA and Scoot flights between Feb 28 and Mar 7 were cancelled. The national carrier said it was monitoring the Middle East situation and would adjust flight paths “as needed”. It warned that other SIA flights may be impacted.