SingPost’s global segment to benefit from lower air costs: analyst

This could be a silver lining as the firm faces headwinds.

With China’s reopening, SingaporePost’s (SingPost) international postal segment will benefit from this as the air freight costs will decline.

In a brokerage report, UOBKayHian stated this positive report as the company faces challenges ahead such as “the loss of a major ecommerce customer from the higher-margin Domestic Post & Parcel (DPP) segment, and volumes for the DPP and International Post & Postal (IPP) segments were lower year on year.”

In the third quarter of fiscal year 2023, SingPost recorded higher revenue but weaker profit.

Its traditional business is still facing a decline due to the paperless commitment of firms and sharp decline in e-commerce volumes.