Singapore Airlines May Report Profit for FY 2023: Earnings Preview

Dow Jones2023-05-16

Singapore Airlines is scheduled to report results for the fiscal year 2023 after market close on Tuesday. Here's what you need to know:

NET PROFIT FORECAST: The airline is expected to record a net profit of 2.08 billion Singapore dollars (US$1.56 billion) for the fiscal year ended March, according to estimates compiled on FactSet. This compares with a loss of S$962 million a year earlier.

REVENUE FORECAST: Revenue is expected to rise to S$17.80 billion, according to analysts polled on FactSet. That is higher compared with the revenue of S$7.62 billion a year earlier.

WHAT TO WATCH:

-- PASSENGER YIELD: Passenger numbers are likely to be in focus. Analysts are watching if Singapore Airlines will guide that the current strength in passenger yields will hold up into the summer and possibly until the end of 2023, says Citi analyst Kaseedit Choonnawat in a note.

-- CARGO YIELDS: While passenger numbers have been holding up, analysts reckon that cargo yields in the fourth quarter are unlikely to have performed well. Cargo yields could continue to weaken at a faster rate after FY 2023, due to a global slowdown in consumer purchases amid inflation pressures, says CGS-CIMB analyst Raymond Yap in a research report.

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