Singapore Airlines' Q2 results likely to be scrutinised for cost, yield pressures
COSTS and yields are likely to be central themes when Singapore Airlines (SIA) releases its second quarter results in November.
Jet fuel prices have risen in the double-digits this year, although the group may be able to cushion some of the sting through its fuel hedges. For July 2018 to March 2019, it had hedged around 46 per cent of its requirements in MOPS and Brent at an average price of US$65 per barrel and US$54 per barrel, respectively.
"We believe SIA could face cost pressures over the next two quarters from higher fuel prices and a likely increase in wage bill, given ongoing negotiations with pilots," noted UOB Kay Hian analyst K Ajith in a recent report.
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