Singapore Airlines' stock price rises after third-quarter yield improvement announcement

Singapore Airlines shares rose to a seven-month intraday high on Wednesday after the company reported an improvement in its third-quarter passenger yield.

The company's shares were last up 2.0% at 7.17 Singapore dollars, after briefly hitting a seven-month intraday high of 7.19 Singapore dollars.

DBS Group Research analyst Tabitha Foo said in a report: "Passenger yield unexpectedly turned positive (year-on-year) after a period of normalization."

Yield refers to the average price paid by a passenger to fly one kilometer.

Foo added: "Given the persistent pricing pressure in the Asia-Pacific region amid increasing competition, this improvement is noteworthy and could indicate a more constructive pricing environment is emerging."

As industry capacity expands and competition intensifies, the flag carrier in Singapore has reported a decline in passenger yield over the past year.

This recent quarterly rebound helped drive a 5.5% year-on-year increase in revenue to a record 5.51 billion Singapore dollars, equivalent to 4.35 billion US dollars.

Analysts at Citi Research wrote in a report that this performance exceeded the average expectation, and although core profits declined, the market should respond positively. Citi maintained its sell rating on the stock with a target price of 6.28 Singapore dollars.

Editor: Liu Mingliang