Daiwa has lowered its target price for Singapore Airlines (SIA)(SIAL.SI) to $17.00 from $18.08 and kept its “outperform” rating.

Daiwa has lowered its earnings forecast for SIA by 6-17% for fiscal years 2011-2013 to account for higher jet-fuel prices and to include cargo price-fixing penalties.

The brokerage also said it expects SIA to report a net profit of $252 million for the third quarter, 38% lower than the year ago period, due to one-off fines by the European Union and the U.S. For cargo price-fixing.

Daiwa said without those fines, the world’s second largest carrier by market value, would have reported a net profit of $415 million or 6% higher than the same quarter in the previous financial year.

At 9:38 a.m. GMT, shares of SIA were 0.26% lower at $15.08 and have fallen 1.4% so far this year.