Singapore Airlines: Too Inconsistent For Investment
Portfolio Pulse from
Singapore Airlines' Q2 FY25 net profit increased significantly due to a non-cash gain from the Air India-Vistara merger. Despite stable operating margins, rising costs and declining unit revenues weaken its investment appeal. The stock is upgraded from sell to hold due to its discount to peers.
February 24, 2025 | 10:30 pm
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Singapore Airlines' Q2 FY25 net profit surged due to a non-cash gain from the Air India-Vistara merger. Despite stable margins, rising costs and declining revenues weaken its investment appeal. The stock is upgraded from sell to hold due to its discount to peers.
The upgrade from sell to hold suggests a neutral short-term impact on SINGY's stock price. The significant profit increase is due to a one-time gain, not operational improvements, and rising costs and declining revenues are concerns.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100