As air travel recovers globally, airlines are returning to the radar of investors as well as passengers. According to the International Air Transport Association (IATA), global passenger traffic is now at 74% of pre-pandemic levels, with the Asia-Pacific region recording the highest growth.
Singapore Airlines (SG:C6L), Singapore’s flag carrier has reported a significant increase in passenger numbers since April 2002 after the country fully opened its borders to vaccinated travelers. The company’s passenger numbers in the second quarter of fiscal year 2022-23 are now at 68% of 2019 levels.
Stock prices have followed a similar trend, showing recovery after hitting lows during the COVID-19 pandemic. The stock was up almost 16% last year and has gained 11% in the past six months.
Drive website traffic
According to the TipRanks website traffic tool, Singapore Airlines reported a monthly growth rate of 43.63% in November 2022 with 4.2 million unique users. Looking at the YTD figures, the airline saw a 117% growth in his 40.6 million visitors.
With this tool, investors can gain insight into the performance and growth of a company’s website and compare it over different time periods. Investors can use this tool to capture data points about website traffic along with stock price movements to assess future performance.
strong financial performance
The growth shown in the website tools underscores the company’s strong set of results. The recovery in passenger numbers has enabled the company to achieve a record half-year operating profit in his 2022-23 fiscal year. Revenue recorded $8.4 billion, representing 197% growth compared to the first half of 2021-22. Operating profit was S$1.23 billion, a significant improvement from his S$620 million loss in the same period last year.
The company’s resilience to emerge from terrifying times and its ability to capitalize on growth opportunities are commendable.
As a result of these encouraging numbers, the company has been able to resume its dividend, announcing an interim dividend of S$0.1 per share.
Singapore Airlines stock price forecast
Singapore Airlines shares are rated Hold, according to TipRanks analyst consensus. The company has a total of 6 ratings, including 3 buys, 1 hold and 2 sell recommendations.
Average target price is S$5.8, The high and low are S$6.64 and S$4.7 respectively. A price target implies a change of 4% at the current price level.
in conclusion
Singapore Airlines expects demand to grow further as travelers prepare for the holiday season and Chinese New Year period. Conversely, freight demand is expected to be somewhat weak amid macroeconomic challenges such as lower product demand and declining inventories.
Increased website traffic and strong operational performance point to a smooth path to Singapore Airlines’ recovery.
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