Singapore Airlines - CGS-CIMB Research 2024-01-09: Upgrade To ADD For Big Returns Over Half Year

• Singapore Airlines (SIA) is releasing its 3QFY24 (Oct to Dec 2023) business update on 20 Feb 2024. We expect SIA to deliver 3QFY24F PATAMI of ~S$800m, followed by PATAMI of ~S$700m in 4QFY24F.
• - Read this at SGinvestors.io -

Re-rating catalysts from strong pax and cargo demand in 2HFY24F

• The strong 3QFY24F performance of SIA would likely be driven by the continuing strong passenger airline passenger load factor (PLF) of 87-88% in Oct-Nov 2023. We expect PLF to rise to ~90% in Dec 2023F from the year-end holiday travel peak, and which we think will likely keep yields elevated in 3QFY24F.
• - Read this at SGinvestors.io -
• We expect CLF to rise to 59% in the Dec 2023 seasonal peak (+4.7% y-o-y), due to robust e-commerce trade between China and Europe/the US.

Red Sea disruption to benefit air freight demand

• Read more at SGinvestors.io.

Raymond YAP CFA CGS-CIMB Research | https://www.cgs-cimb.com 2024-01-09 SGinvestors.io

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