“The demand for air travel is likely to remain firm in 1QFY2025, buttressed by a strong pick up in forward bookings to North Asia and Southeast Asia. But passenger yields may moderate further as other airlines increase capacity,” he adds.
Maybank Securities has initiated “hold” on Singapore Airlines (SGX:C6L
) (SIA) with a target price of $7.10, based on 1.34x its FY2025 price to book ratio, or 1-standard deviation above its historical mean.
In his July 12 note, analyst Eric Ong forecasts the carrier’s FY2025 to FY2027 net profits to progressively decline. However, absolute earnings are still projected to remain at much higher levels compared to its pre-pandemic years, given strong air travel demand.
