Singapore Airlines (SIA)

SIA kept at 'buy' with transformative journey improving profitability

SINGAPORE (May 23): DBS Group Research is maintaining Singapore Airlines at “buy” with $10.80 target price on expectations of improvement in SIA’s profitability in FY20 as it carries out its transformative journey and valuations stay undemanding.

DBS credits SIA’s transformation programme for making a difference with revenue growth finally returning after years of stagnation and cost management efforts also bearing fruit. This is evident in SIA posting stronger profit performance in 2H19 compared to 1H19.

SIA weathers aircraft groundings as transformation plans reaches its final year

SINGAPORE (May 17): “That’s not what we’re looking at,” Singapore Airlines’ chief executive officer Goh Choon Pong laughs, when asked about the possibility of merging SIA with Malaysia Airlines.

The idea of a merger had been mooted recently by a Maybank analyst.

But speaking at SIA’s FY18 results briefing on Friday, Goh dismissed the suggestion. “We’re concentrating on our transformation plan,” he adds.

SIA posts 28% fall in 4Q earnings to $203 mil on weaker operating performance, SilkAir’s restructuring

SINGAPORE (May 16): SIA Group reported full-year earnings of $683 million, down 47.5% from $1.3 billion a year ago, primarily due to the lower operating profit and higher non-operating costs.

For 4Q ended March, the group saw a 27.8% drop in earnings to $203 million, driven by the weaker operating performance and an increase in non-operating items mainly due to SilkAir’s re-fleeting and restructuring.

Correspondingly, 4Q earnings per share fell from 109.7 cents to 57.4 cents.

STI retreats towards 3,220

SINGAPORE (May 11): The Straits Times index retreated 119 points or 3.5% over the past five sessions, taking it below the 50-day moving average currently at 3,277.

At the same time, quarterly momentum continues to fall.

Although quarterly momentum is above its main support at its equilibrium line, its chart pattern is weak and has the potential to break below this support.

Elsewhere, both short term stochastics and 21-day RSI are in sharp retreat. ADX has turned down, and the DIs have turned negative

Singapore Airlines, SATS extend partnership with new five-year contract commitment

SINGAPORE (April 30): Singapore Airlines (SIA) and SATS Ltd have agreed to renew a suite of aviation services contracts for the next five years as part of their bid to strengthen Singapore’s overall competitiveness as a hub.

For the next five years starting from April 1, SIA and SilkAir contracts will have a five-year tenure with the option to extend for another five years. It encompasses inflight catering and cabin handling, passenger and ramp handling, cargo handling, aircraft interior cleaning, aviation security and laundry services.

UOB and KrisFlyer launch credit card for pairing with savings account to earn air miles from spending

SINGAPORE (Apr 23): United Overseas Bank (UOB) and KrisFlyer have launched the KrisFlyer UOB Credit Card.

This is a credit card which can be combined with a savings account to earn bonus KrisFlyer miles when customers spend and save.

With the KrisFlyer UOB Credit Card, cardmembers will earn three KrisFlyer miles on their everyday spending, such as on dining and online food delivery, online shopping and public transport.

KrisFlyer is Singapore Airlines Group’s frequent flyer programme.

B737 Max grounding uncertainty is SIA's biggest worry: UOB KayHian

SINGAPORE (Apr 18): UOB KayHian now believes Singapore Airline’s B737 Max aircraft is likely to remain grounded beyond the research house’s initial July estimate.

Six of SilkAir’s B737 Max aircraft -- accounting for 20% of its current seat capacity -- have been grounded by SIA since mid-March. Two B787-10 jets have also been grounded due to wear and tear on engine blades.

SIA's overall passenger load factor dips to 81.5% for March

SINGAPORE (Apr 15): Singapore Airlines reported March passenger load factor (PLF) for the entire group fell 1.4 ppt to 81.5% after group passenger carriage (measured in revenue passenger-kilometres) increased by 6.2% compared to last year, trailing growth in capacity (measured in available seat-kilometres) of 8.1%.

SIA Engineering, SIA sign new services agreement worth up to $1.4 bil

SINGAPORE (Apr 1): SIA Engineering Company (SIAEC) has signed a new comprehensive services agreement with parent company Singapore Airlines (SIA) for a term of 2 years, with an option to renew for a further period of 2 years.

If the agreement is renewed after the first two years, it is expected to yield SIAEC a labour revenue of around $1.3 to 1.4 billion over four years.

The new agreement will commence on April 1, 2019. It will supersede the previous services agreement entered into in April 2015.

SIA establishes $2 bil medium term bond programme

SINGAPORE (Mar 14): Singapore Airlines has established a $2 billion medium term bond programme.

The city-state’s flagship carrier says net proceeds from the programme will be used to refinance existing borrowings, finance investments and fixed assets as well as goes towards general working capital purposes.

DBS Bank has been appointed arranger of the bond programme while DBS Bank, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB) have been appointed dealers.

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