- We upgrade our call for Singapore Airlines (SIA) to NEUTRAL with a higher target price of S$6.04 (prev: S$5.94).
- - Read this at SGinvestors.io -
- Core activities remained resilient as operating profit rose 0.9% y-o-y to S$398m. Passengers carried by SIA group increased 8% y-o-y to ~ 20.8m, and fuel cost fell 6.7% y-o-y to S$2.5bn. SIA’s associate, Air India, however, faced significant losses due to voluntary capacity reductions, rising operating costs, market seasonality, and unfavourable exchange rate trends.
The Positives
Strong operating performance.
- - Read this at SGinvestors.io -
- This was, however, moderated by an increase in non-fuel costs, which rose 5.9% y-o-y to S$6.3bn.
Fortress balance sheet enhances shareholder returns.
- Read more at SGinvestors.io.
