Dividend yield may bolster SIA stock amid headwinds

IT'S likely to be a familiar theme as Singapore Airlines (SIA) unveils its first-quarter results this week, with core earnings receiving a boost from unwinding fuel hedges and cheap jet fuel even as yields feel the impact of a competitive environment.

And yields are expected to continue to come under pressure on the back of softer demand for premium travel owing to a lacklustre macro-environment as well as intense competition from the Gulf and North Asian carriers.

Other factors could also affect yields going forward, some analysts have highlighted.

The recent spate of attacks in Europe - which accounts for 30 per cent of SIA's capacity - and the coup attempt in Turkey could affect yields and loads to Europe, reckons UOB Kay Hian analyst K Ajith, who rece…