SIA shares reached a seven-month intraday high on Wednesday, following the company's announcement of improved passenger yield for its third fiscal quarter. The stock was recently up 2.0% at S$7.17, after touching an intraday peak of S$7.19 earlier in the session.

An analyst from DBS Group Research noted that the positive surprise in passenger yield turned positive year-on-year after a period of normalization. Yield refers to the average price paid per kilometer flown by a passenger.

The analyst added that the improvement is notable given ongoing pricing pressures in the Asia-Pacific region amid heightened competition, and could signal the beginning of a more constructive pricing environment.

Over the past year, Singapore's flagship carrier had reported declining passenger yields as industry capacity expanded and competition intensified. The rebound in the latest quarter helped lift revenue by 5.5% compared to the same period last year, reaching a record S$5.51 billion, equivalent to US$4.35 billion.

Analysts from Citi Research indicated that the performance exceeded average expectations and should be viewed positively by the market, despite a decline in core profit. Citi maintained a Sell rating on the stock with a target price of S$6.28.