Singapore Airlines (SIA) Earnings: July Passenger Load Factor Hits 85.6% with 3.23 Million Passengers

Singapore Airlines on Smartkarma

Analyst coverage of Singapore Airlines on Smartkarma by Neil Glynn indicates a bearish sentiment. In the report titled “Singapore Airlines – 4Q Likely to Extend the Theme of Earnings Normalization as FY25 Comes into View,” it is highlighted that 4Q24 is expected to emphasize the normalization of SIA’s earnings from peak levels. Forecasts for FY25 suggest further earnings normalization, with estimates approximately 20% below consensus at the operating level. The company is facing inflationary pressures, with one of the highest levels of inflation in the APAC region, leading to a disappointing 4Q24 earnings report expected on May 15.

In another report by Neil Glynn titled “Singapore Airlines – Onset of Earnings Normalization to Heighten Focus on Efficiency,” the focus is on the company’s cost control efforts and its journey towards “normalised” earnings as capacity restoration progresses. SIA’s cost control measures are lagging behind key APAC peers, with concerns about inflation levels relative to competitors. Forecasts include a reduction in operating profit for FY24 and FY25, indicating a need for increased efficiency to manage costs effectively. The report also highlights the importance of optimizing resources such as cargo and Scoot to improve overall cost management for Singapore Airlines.

A look at Singapore Airlines Smart Scores

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 Smartkarma Smart Scores, Singapore Airlines is positioned for a promising long-term outlook. With strong ratings in Dividend and Growth factors, scoring a 5 out of 5 in both categories, the airline demonstrates stability and potential for future expansion. Additionally, the company’s resilience score of 3 indicates a solid ability to weather economic fluctuations. Although its Value and Momentum scores are at a moderate level, the high ratings in Dividend and Growth suggest a positive trajectory for Singapore Airlines in the foreseeable future.

Singapore Airlines Limited, a company providing a range of air transportation services across multiple regions, including Asia, Europe, the Americas, South West Pacific, and Africa, appears to have a solid foundation for growth and stability. With a focus on dividends and growth potential, the airline is positioning itself as an attractive option for investors seeking steady returns and long-term value. Despite facing challenges in the volatile aviation industry, Singapore Airlines‘ strong performance in crucial factors bodes well for its sustainability and continued success in the market.

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