Is Singapore Airlines Worth Your Attention?

Singapore Airlines stock price: what’s the latest?

Singapore Airlines and Scoot, the two airlines in the SIA Group, carried a total of 1.45 million passengers in May 2022, up 62.7% from the previous month.

Group passenger capacity (measured in available seat-kilometres) reached 57% of pre-Covid-19 levels in May 2022, six percentage points above the month before.

The passenger load factor for the month stood at 72.7%, which is the highest since the onset of the pandemic, the group said. This was an improvement of 18.2 percentage points month-on-month or 59 percentage points year-on-year.

The blue-chip counter, which has an average price target of S$5.

Why did DBS rate SIA a ‘buy’?

Earlier that same day, DBS analysts also published their latest investment analysis on the SIA stock, in which they lifted price targets and ratings.

The analysts raised their price target on SIA to S$6.20 from S$4.90 previously, while upgrading a ‘hold’ call to ‘buy’, on the back of higher net profit estimates.

They noted that SIA could rebound faster than anticipated, as the lifting of regional travel restrictions continue to pick up pace.

DBS posited that SIA is likely to be the regional frontrunner as countries reopen to tourists and airlines recover. In particular, Japan’s reopening to tourists is expected to drive a significant revival in inter-region travel for the group.

The analysts also predicted that SIA’s passenger volumes could hit 70% and 96% of pre-pandemic levels by end-FY2023 and end-FY2024 respectively.

$SINGAPORE AIRLINES LTD(C6L.SI)$