- Our optimistic outlook on the aviation sector was reinforced by the latest earnings season, which saw a noticeable change in the tone of management commentary, and companies expressing more optimism on the recovery trajectory.
- Singapore Airlines (SIA, SGX:C6L)’s impressive earnings momentum appears to be sustainable for a while, while
- - Read this at SGinvestors.io -
Air travel in Asia Pacific to catch up with other regions in 2023, with Singapore at the forefront.
- Changi Airport’s passenger traffic experienced a remarkable rebound in 2022, surging to 77% of 2019’s level as of Jan-23, compared to a meagre 13% in Jan-22. Although other countries in the region also saw a significant increase in passenger traffic as travel restrictions were progressively relaxed, Singapore’s recovery outpaced them.
- Looking ahead, we anticipate air passenger traffic in Asia Pacific will continue to recover lost ground in 2023, particularly international travel, as most travel and pandemic-related restrictions in the region have been lifted. We expect Singapore to maintain its lead over other countries and see air traffic to and from the country return to normal by end-2023, thanks to its more successful efforts to restore flights to China.
- Understandably, macroeconomic headwinds are shrouding the outlook for air travel in the region, with stubborn inflation threatening to curtail discretionary consumer spending. However, it is important to bear in mind that the Asia Pacific region still has a considerable gap to close compared to other regions like Europe and North America, which reopened much earlier.
SIA’s passenger traffic recovery will continue to outpace peers in the region.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Jason SUM CFA DBS Group Research | Tabitha FOO DBS Research | Paul YONG DBS Research | https://www.dbs.com/insightsdirect/ 2023-03-10
