SIA jumps to 6-month high of S$11.24 as profit tops analyst estimates
Singapore
SINGAPORE Airlines climbed to a six-month high after reporting a quarterly profit that beat analyst estimates, as lower fuel prices helped South-east Asia's largest carrier attract more passengers with cheaper fares.
The stock rose 3.9 per cent to S$11.24 on Friday, the highest close since July 29. The shares gained 0.4 per cent this year, compared with 9 per cent decline for the benchmark Straits Times Index.
Net income climbed 36 per cent from a year earlier to S$274.9 million in the third quarter ended Dec 31, SIA said on Thursday after the close of trading, compared with analysts' estimates of S$224 million. The carrier boosted occupancy of its seats to 80 per cent from 78 per cent a year earlier with lower fares, helping to achieve the profit even as it lost S$72 million in fuel hedges and S$77 million from the weakening of the local currency against the US dollar.
"The numbers should get progressively better as fuel hedges come close to spot" prices, Alan Richardson, a Hong Kong-based money manager at Samsung Asset Management Ltd, said.
Mr Richardson said last month that he was betting on improved earnings for SIA as it benefited from plunging jet fuel prices.
The price of jet fuel cargoes loading from Singapore fell 39 per cent in the past 12 months to US$42.84 on Thursday. Bloomberg
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