In view of the slow recovery in air travel, SATS is expected to incur a net loss in FY21, according to DBS Group Research.

The brokerage’s harsh forecast is based on the bleak guidance provided by the International Air Transport Association.

According to IATA, air travel could normalise to pre-Covid-19 levels only in 2024.

“This has led us to keep our FY20-21 earnings forecasts unchanged, as they are on track for normalisation in FY25,” DBS analysts Alfie Yeo and Andy Sim write in note dated Sept 7.

For now, poor air traffic can be expected at Changi Airport, says DBS.

Key catalysts for the stock are the availability of a Covid-19 vaccine and a recovery in mass travel.

DBS has maintained its “hold” rating for SATS with an unchanged target price of $3.15.

As at 10.44 am, SATS was up 3 cents or 1% at $3.01 with 499,100 shares changed hands.