0655 GMT - Singapore aviation companies, including Singapore Airlines and catering company SATS, will likely hold up better than Southeast Asian peers amid rising inflation pressure on travel demand, Citi analysts say in a research note. Rapid inflation and geopolitical uncertainties may slow air ticket demand from the summer months, Citi projects. Singapore companies are better positioned to weather such a headwind thanks to ample cash on hand and less discounting pressure, Citi notes, adding it may be harder for regional peers to raise prices amid inflation given a price-conscious client base. "Our read is Singapore and Changi Airport will continue to expand and take connecting traffic shares from other Asean hubs despite cost inflation," Citi says. (yifan.wang@wsj.com)
$(END)$ Dow Jones Newswires
May 13, 2022 02:55 ET (06:55 GMT)
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