, Singapore

Pressure on SIA passenger yields to intensify

Double trouble with weak cargo profits.

According to DBS, Singapore Airlines (SIA) contines to face a tough operating environment.

"While lower fuel prices should provide some relief for SIA, passenger yields are expected to continue to be under pressure, with its cargo operations also struggling for profitability," the research firm said after the release of SIA's 1QFY14 results.

"The risk to our earnings projection is on the downside if the
decline in yield becomes even more pronounced. SIA’s balance sheet remains strong with a net cash position of over S$4.5bn or more than S$3.80 per share," reckoned DBS.

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