- Group airlines passenger load factor has slightly decreased to 87.2% from 88.3% year over year (y/y).
- The number of passengers carried by group airlines increased 18% y/y, totalling 3.17 million.
- Group cargo load factor experienced a notable jump, reaching 58.6% in contrast to the 50.7% recorded y/y.
- The amount of cargo and mail transported by the group rose by 29% y/y, tallying up to 88.8 million kg.
- There were increases in several measures of Group airline activity, including available seats-kilometres (+13.2%), and revenue passenger-kilometres (+11.9%).
- Supply chain constraints are posing challenges for Singapore Airlines (SIA).
- All remaining McBs will be redeemed by SIA.
- As we near the end of FY2023/24,there seems to be a strengthening of cargo demand according to SIA.
- SIA reports that the demand for air travel looks promising in the 1Q of FY2024/25.
- It’s predicted that passenger yields will likely continue to moderate.
- Due to security issues in the Red Sea region, there has been a shift to air freight by some shippers; this is observed by SIA.
- SIA notes an increase in forward bookings to North Asia and South East Asia, underlining a healthy demand for air travel in 1Q of FY2024/25.
- The industry continues to face challenges including rising geopolitical tensions, an uncertain macroeconomic climate, supply chain constraints, and elevated inflation across many parts of the world.
- The Group’s ratings currently stand at 2 buys, 7 holds, and 3 sells.
Singapore Airlines on Smartkarma
Analyst coverage of Singapore Airlines on Smartkarma provides a comprehensive view of the company’s performance and future prospects. Neil Glynn‘s bearish sentiment in the report “Singapore Airlines – 4Q Likely to Extend the Theme of Earnings Normalization as FY25 Comes into View” highlights the challenges SIA faces in normalizing earnings, with forecasts for FY25 significantly below consensus due to inflationary pressures and disappointing 4Q24 results expected on May 15.
In contrast, Mohshin Aziz‘s bullish outlook in the report “Singapore Airlines (SIA SP | BUY | SGD: 8.07): Nov’ 2023 Op Stats, More Reason to Be Bullish” emphasizes SIA’s strong performance in November 2023, dispelling fears of peak demand and earnings. With positive operating statistics and favorable cost trends, the report suggests potential for SIA to exceed consensus expectations, recommending a BUY rating with a target price of SGD8.07 and upside potential of 26%.
A look at Singapore Airlines Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Singapore Airlines has a positive long-term outlook. With high scores in Growth, Resilience, and Momentum, the company is positioned for future success. Singapore Airlines‘ strong Growth score indicates potential for expansion and development within the industry, while its Resilience score suggests the company’s ability to navigate challenges effectively. Additionally, the Momentum score highlights the company’s current positive trajectory in the market. These factors combined indicate a promising future for Singapore Airlines.
As a leader in air transportation, Singapore Airlines Limited offers a wide range of services including engineering, pilot training, air charter, and tour wholesaling. Serving various regions across the globe, including Asia, Europe, the Americas, South West Pacific, and Africa, the company has established itself as a prominent player in the airline industry. With solid scores across different factors according to Smartkarma’s evaluation, Singapore Airlines continues to demonstrate strength and potential for long-term growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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