“On the back of a seemingly improving global economic outlook that drives demand in passenger traffic, and coupled with support from premium economy, we are also forecasting a slowdown in decline in SIA’s passenger yields over the next two years,” says Chua.
SINGAPORE (Aug 1): OCBC Investment Research is maintaining Singapore Airlines at “hold” with $10.10 fair value on absence of clear signs of a recovery in yields on the back of persistently competitive landscape.
In a Tuesday report, analyst Eugene Chua expects competition to remain intense with Chinese carriers expanding capacity aggressively on the North-Asia and Transpacific routes and from the Gulf carriers’ persistent pressures on the Southwest Pacific routes.
