SINGAPORE - A Singapore Airlines (SIA) with a now much stronger balance sheet is likely to redeem soon all its outstanding mandatory convertible bonds, or MCBs, to limit share dilution, according to Citigroup Global Markets.

In a report issued on Monday, Citi suggested that an early redemption has been made possible by the faster-than-expected recovery in air travel, which has further boosted the airlines’ strong cash position and its positive cashflow. Adding to this is the likely delay in capital expenditure due to the setback in delivery dates for SIA’s Boeing 777X plane orders.