Here's why SATS is a better play compared to SIA

It has stabilising pax yields and higher cargo throughput.

UOB Kay Hian reports that SATS is a potential beneficiary of Qantas’ return to Changi Airport after a five-year hiatus, making Changi its largest hub outside of Australia. SATS is already providing catering and ground handling services to Qantas’ sister airline Jetstar.

Here's more from UOB Kay Hian:

SIA’s pax yields have shown sequential improvement for two quarters, with yield declining just 1.9% yoy in 1QFY18. SATS’ inflight catering ASP will likely stabilise in the coming quarters as pressure on airline yields abates.

We expect SATS to benefit from higher gateway services revenue, driven by strong global cargo volumes. We think SATS is a better play compared to SIA on stabilising pax yields or higher cargo throughput given SIA’s exposure to volatile fuel prices.