SIA - Still A Great Way To Fly

Why I like this stock.

1. It is the only Singapore brand which has earned global recognition.
2. Has a cash horde of more than S$5B.
3. Able to sustain its S$1 annual dividends (Yield of 8.3% based on $12 stock price).
4. Able to pass on fuel costs through fuel surcharges.
5. Downward fuel price is positive on earnings (Fuel makes up 1/3 of total costs).
6. Tiger Airlines, an associate company and budget carrier, turned in profits for the first time.

Headwinds.

1. Business and discretionary travel slowing (load factor).
2. Challenges in securing toe hold of the China market via China Eastern Airlines stake.