China Galaxy International: Middle East conflict may put pressure on profitability of Singapore transportation industry

Analysts from China Galaxy International stated in a report that the profitability of Singapore's transportation industry may come under pressure due to the conflict in the Middle East, but the extent of the impact will partly depend on the business models of individual companies. Since the start of the war, aviation fuel prices have risen by over double, while gasoline prices in Singapore have increased by approximately 19%, reflecting tight supplies and rising refining margins. Airlines are expected to face the most direct margin compression, while land transport and aviation service providers are more able to partially mitigate the impact of rising costs through factors such as adjusting ticket prices.