Singapore Aviation Companies Look More Resilient Amid Inflation Pressure -- Market Talk

Dow Jones2022-05-13

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)

Copyright (c) 2022 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Menaka
    2022-05-18
    Menaka
    👍🏻👍🏻👍🏻
Leave a comment