At the same time, the analyst sees China’s reopening as a “double-edged sword” for SIA.

While the national carrier and its sister airline Scoot stand to benefit from a recovery in inbound and outbound passenger flows, Yap said growing competition with Chinese and Hong Kong carriers may force SIA to give up its unsustainably fat yield premiums.

“Upside risks include potential for the Chinese passenger traffic recovery to exceed expectations due to a tsunami of revenge travel,” he added.