SINGAPORE (June 19): Singapore Airlines, the city state’s flag carrier, faces numerous challenges, but oil could help take the edge off.

Oil prices dipped on Monday, weighed down by a continuing expansion in US drilling that has helped to maintain high global supplies despite an OPEC-led initiative to cut production to tighten the market.

Singapore’s flag carrier recently started a review of its businesses, and changes could include job losses in coming months.

And while Singapore Air continues to invest in new planes and onboard amenities to remain a premium global airline, the company has also built a low-cost business to compete with aggressive, no-frills carriers that have seen a rapid rise in Asia in this decade.

Paying less for jet fuel is a noted plus as SingAir navigates this environment.

Shares in SIA are up 4 Singapore cents at S$10.01 on Monday.

Year to date, they are up 3.5%, trailing the Straits Times Index 12.6% rise in the same period.