SINGAPORE (Nov 8): Analysts are putting Singapore Airlines on “hold”, with cloudy skies ahead for the national carrier unlikely to be lifted by the integration of Scoot and Tigerair. SIA reported a 70% fall in 2Q earnings to S$64.9 million as excess capacity and aggressive pricing by competitors depressed yields. Scoot and Tigerair overturned losses from a year ago to register operating profits of S$5 million and S$3 million, respectively. UOB Kay Hian lead analyst K. Ajith agrees that the integration could “lead to cost savings and incremental revenue”. UOB is keeping its “hold” call on SIA, with a marginally higher target price of S$10.10, from S$10.00 previously.

Source: The Edge Markets November 08, 2016 08:41 UTC