UOB Kay Hian is maintaining a “buy” on Singapore Airlines with a lower $13.90 target, cut from $14.00 previously.
That’s because the outlook looks good for Singapore’s flag carrier after its operating margin improves to 7.3% in its fiscal third quarter, the highest in five years, says UOB.
SIA’s earnings are likely to improve further as costly fuel hedges unwind, yields stabilise and its units SilkAir and Scoot operate newer, more fuel efficient aircraft, adds UOB.
SIA’s yields, or the revenue earned per passenger per kilometre flown, are expected to stabilise as it launches a new premium economy cabin that will allow it to charge higher fares.
The key measure of airlines' revenue generating potential has been declining at SIA amid tougher competition, especially from the Gulf airlines.
As at 11.37am, shares of SIA are up 0.18% at $11.03, compared a rise of 0.05% in the benchmark Straits Times Index.
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That’s because the outlook looks good for Singapore’s flag carrier after its operating margin improves to 7.3% in its fiscal third quarter, the highest in five years, says UOB.
SIA’s earnings are likely to improve further as costly fuel hedges unwind, yields stabilise and its units SilkAir and Scoot operate newer, more fuel efficient aircraft, adds UOB.
SIA’s yields, or the revenue earned per passenger per kilometre flown, are expected to stabilise as it launches a new premium economy cabin that will allow it to charge higher fares.
The key measure of airlines' revenue generating potential has been declining at SIA amid tougher competition, especially from the Gulf airlines.
As at 11.37am, shares of SIA are up 0.18% at $11.03, compared a rise of 0.05% in the benchmark Straits Times Index.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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