SIA to face earnings headwinds from European unrest

SINGAPORE (July 19): UOB Kay Hian is maintaining its “hold” recommendation on Singapore Airlines (SIA) with a marginally reduced target price of $11.50 from $11.60 previously, on the political and social unrest that has been plaguing Europe in recent times.  

This comes after the 14 July Bastille Day attack in Nice as well as a failed military coup attempt in Turkey on 16 July.

In a Tuesday report, analyst K Ajith and Sophie Leong say the latest spate of terrorist attacks and the coup attempt in Europe will impact the demand for travel to the region in the coming quarters. In turn, they expect SIA’s loads and yields to Europe to decline.

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