Singapore Airlines' Headwinds Likely to Persist in Near Term -- Market Talk

Dow Jones
2024/11/11

0530 GMT - Singapore Airlines may continue facing a challenging operating environment in the near-term, DBS Group Research analysts write in a note. Sticky inflation, supply chain issues and fierce competition amid falling passenger ticket pricing will likely persist in the aviation industry, DBS says. SIA's latest quarterly results missed both DBS and market consensus estimates as passenger capacity expansion outpaced traffic growth, resulting in higher than estimated costs, DBS notes. There was also higher labor, fuel and inflight expenses, with 1H operating profit missing expectations, DBS adds. The bank has a hold rating with a target price of S$6.40 on the stock, which is last at S$6.22. (kimberley.kao@wsj.com)

 

(END) Dow Jones Newswires

November 11, 2024 00:30 ET (05:30 GMT)

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