, Singapore

SIA’s net income expected to soar in Q3 on back of much lower fuel costs

Its core profit could jump by 163%.

The national carrier is expected to report a surge in net profit when it unveils its third-quarter results on February 6. UOB Kay Hian estimates that SIA’s net profit will jump by 163% in the third quarter, on back of lower fuel costs and smaller losses from its associates.

“We estimate a minimum of 10% decline in group fuel costs, based on guidance on hedged levels and average prices. This, along with a return to profitability by Tigerair, which will be treated as a subsidiary in the coming quarter, should lead to a strong earnings recovery,” stated UOB Kay Hian.

SIA Engineering is expected to report smaller losses this quarter, following a 43% decline in operating profit in the third quarter.

Silk Air and Scoot are also expected to report improved earnings, while SIA’s cargo operations should also return to profitability in 3Q due to lower fuel cost and improved load factor. 

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