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DBS believes SIA’s recovery will outpace regional peers; maintains ‘buy’

Lim Hui Jie
Lim Hui Jie5/24/2022 04:28 PM GMT+08  • 2 min read
DBS believes SIA’s recovery will outpace regional peers; maintains ‘buy’
DBS thinks SIA will fare better than its regional peers, thanks to Singapore's VTLs and the reopening of borders.
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DBS Group Research’s Paul Yong and Jason Sum have maintained their “buy” call and target price of $6.20 on local airline carrier Singapore Airlines (SIA) as they expect the company to recover faster than its regional peers.

Despite its 4QFY2022 ended March being in the red, the analysts say this is within expectations, and highlighted the fact that passenger revenue surpassed cargo revenue, as well as that SIA was now in a cash surplus position. SIA also managed to narrow losses significantly for FY2022, on the back of improved passenger traffic.

Sum and Yong note that SIA’s international passenger traffic has been recovering at a faster clip than its peers since Singapore launched its first Vaccinated Travel Lane (VTL) in September 2021.

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