Improving average air freight rates in US dollar terms, as observed by UOB up until February, also bear positive implications for Singapore Airlines’ (SIA) cargo yields – leading the analysts to believe that the group’s cargo losses could narrow in 4Q17.
SINGAPORE (April 5): UOB Kay Hian is maintaining Singapore’s aviation sector at “market weight” after observing a decline in flight movements in recent months, which suggest varying fortunes for both airlines and ground handlers in the industry.
In a report on Wednesday, analysts K Ajith and Sophie Leong recall that Changi’s flight movements in February declined for the first time in 23 months even as pax throughput rose, which points towards the likelihood of airlines reducing frequencies while flying fuller loads.
