SIA gets a lift from structural reforms and cyclical tailwinds

SINGAPORE (Jan 23): CIMB says new orders from global manufacturers will continue to support the aviation industry into first half of the calendar year.

And while oil prices have risen sharply over the past six months, analyst Raymond Yap believes that robust growth of non-OPEC production will cap further price increases.

"We expect the positive cyclicality to support a 10.2% increase in SIA’s FY19 core net profit, rising to 11% growth in FY20 as SIA’s transformation initiatives take effect," says Yap in a Tuesday report.

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