“Operational efficiency was also impacted by the forced relocation to Changi Terminal 4, which disrupted connectivity and increased costs. These pressures, combined with a highly competitive Southeast Asian market, contributed to the decision to exit,” writes the DBS team.
The team of analysts at DBS Group Research has maintained its “hold” call on Singapore Airlines (SGX:C6L
) group (SIA) with an unchanged target price (TP) of $6.40 following the ceasing of operations of competitor budget carrier Jetstar Asia.
The closure of the low-cost carrier follows persistent profitability challenges in recent years, with the carrier’s performance deteriorating further in the 2HFY2025 leading to an expected underlying earnings before interests and taxes (ebit) loss of A$25 million ($20.8 million).
