Singapore Airlines Shares Touch Over 3-Year High

By P.R. Venkat

Singapore Airlines' shares touched an over three-year high Wednesday as investors cheered the carrier's results, which beat street expectations and raised hopes of better earnings visibility in coming quarters.

The stock hit a high of 6.08 Singapore dollars (US$4.54), the highest intraday level since February 2020. Shares were last up 2.4% at S$6.06.

For the fiscal year ended March, the airline reported the highest net profit in its 76-year history at S$2.16 billion.

That beat the expectations of eight analysts polled by FactSet, which had tipped profit at S$2.08 billion.

"We see room for consensus to revise up FY23/24E core earnings where we are 16% above," Citi analyst Kaseedit Choonnawat said in a note after the airline reported results late Tuesday.

Like many airlines, SIA's operations were severely hampered due to Covid-19 curbs, prompting the Singapore government to pour in billions of dollars to support the carrier's operations.

In its statement, the airline said that group passenger capacity reached 79% of pre-Covid levels in March, and that the demand outlook for air travel remains robust, underpinned by a recovery in air travel in East Asia.

The airline added that forward sales remain healthy across cabin classes, led by a strong pick-up in bookings to China, Japan and South Korea.

Citi, which maintains a buy rating on the stock, said SIA partner Air India's finances would also likely provide an upside surprise to the Singapore carrier given pent-up demand in India's aviation sector.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

May 16, 2023 22:19 ET (02:19 GMT)

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