- In July 2025, the aviation sector delivered a strong performance, as markets appeared increasingly numb to ongoing tariff concerns. China Aviation Oil (CAO) led the gains, surging 15% on expectations of strong 1H25 results. SIA Engineering (SIE), Singapore Airlines (SIA), and SATS also posted solid gains of 6.8%, 6.3%, and 3.3%, respectively.
- In June 2025, air travel demand stayed robust, driven by the start of the summer travel season and Singapore’s mid-year school holidays. This resulted in a 4.5% YoY increase in SIA passenger traffic, surpassing the 3.1% YoY growth in passenger capacity.Cargo demand remained resilient, underpinned by front-loading activity amid rising uncertainty in the global trade environment, although momentum slowed. Cargo loads rose 0.4% YoY, lagging behind the 3.3% increase in cargo capacity. Consequently, the cargo load factor dipped 1.6 ppts to 56.4%.
- We maintain a NEUTRAL stance on air transportation.
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