- The International Air Transport Association (IATA) recently announced that passenger traffic demand remained robust in April. Total traffic (measured in revenue passenger kilometres (RPK)) rose 45.8% versus April 2022. Globally, air traffic is at 90.5% of pre-COVID levels, led by domestic traffic which has surpassed April 2019 levels by 2.9%.
- - Read this at SGinvestors.io -
- In the near term, further travel demand recovery is likely to be supported by the peak travel season in the Northern hemisphere, as well as a more meaningful recovery in outbound travel from China in the second half of 2023.
- As easing inflation and declining jet fuel prices moderate cost pressures, strong air traffic demand may sustain for a longer period of time, presenting further upside potential for airlines.
SIA’s brand promise remains in-tact
- - Read this at SGinvestors.io -
- SIA also announced that it will be providing free unlimited in-flight Wi-Fi to KrisFlyer members flying in economy and premium economy classes from 1 Jul 2023.
- We think that SIA’s responsiveness underscores its commitment to service excellence, and is a long-term positive for its brand image. This could prove to be a powerful asset and lend SIA greater competitiveness and resilience in defending its market share when demand and prices begin to normalise.
- Separately, we also look favourably on SIA’s planned joint venture with Garuda Indonesia, which will expand SIA’s network connectivity, in line with its longer-term strategy.
Risk-reward profile has become more balanced
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2023-06-05
Read also OCBC's most recent report:
2023-07-31 Singapore Airlines - Cruising Altitude.
Previous report by OCBC:
2023-06-14 Singapore Airlines (SIA) - Pit Stop ~ Taking Stock.
Price targets by 3 other brokers at SIA Target Prices.
Listing of research reports at SIA Analyst Reports.
Relevant links:
SIA Share Price History,
SIA Announcements,
SIA Dividends & Corporate Actions,
SIA News Articles