SIA Engineering Company (SIAEC) stock is soaring 4.51% in intraday trading, significantly outperforming the broader market. The sharp uptick comes on the heels of a major business development for the maintenance, repair, and overhaul (MRO) specialist.

SIAEC announced that it has signed fresh services agreements with national carrier Singapore Airlines (SIA) and its low-cost subsidiary Scoot. The new contracts, which took effect from April 1, are expected to yield a total labor revenue of S$1.3 billion. These agreements, set for a two-year term with a one-year extension option, supersede the previous contracts inked in April 2023.

The scope of these agreements covers a broad spectrum of MRO and fleet management support services for SIA and Scoot fleets. This development is seen as a major boost for SIAEC, potentially securing a steady stream of revenue for the coming years. Investors are reacting positively to this news, viewing it as a sign of SIAEC's strong market position and its ability to maintain crucial partnerships within Singapore's aviation sector. The stock's impressive performance today reflects the market's optimism about SIAEC's future prospects in light of this significant deal.