0601 GMT - Investors looking at Singapore's aviation sector should position for activity, not fuel sensitivity, DBS Group Research says. Analyst Jason Sum notes that global passenger traffic is stabilizing, citing improving bookings and scheduled capacity growth. Meanwhile, the cargo segment's outperformance will likely extend into 2027. "Aviation activity is holding up better than airline-sector earnings and, in several cases, better than valuations imply," Sum writes in a note. SATS leads DBS's industry pecking order because of its compelling risk-reward profile, followed by SIA Engineering, ST Engineering, China Aviation Oil and Singapore Airlines. DBS has a buy rating and target price of 5.00 Singapore dollars on the stock, which is last at S$3.70.