Expect more turbulence ahead for Singapore Airlines

Improvements seen in August "likely" temporary.

"We believe optimism over Singapore Airlines’s (SIA) Aug 2013 operating statistics is premature as the slight improvements are likely to be temporary in nature," said OCBC in its market pulse morning call.

"Passenger demand growth should remain tepid in the coming quarters and the persistence of promotional activities will depress passenger yields. In addition, capacity additions from new routes have continued to outpace passenger growth and jet fuel price increases show little signs of abating, which will put further pressure on the carrier," it added.

Even the latest announcement of a joint venture airline in India may encounter some hiccups.

"At face value, SIA’s decision to enter into a full-service airline joint venture with Tata Sons should help the group to expand its presence in India. However, the Indian aviation industry is a crowded space and together with the lack of adequate airport infrastructure, this makes execution inherently difficult," said OCBC.

"In addition, the process is likely to be hindered by opposition from industry insiders as with the Tata-AirAsia low-cost venture announced earlier," it added.