- SIA (SGX:C6L)'s 1QFY25 revenue met our expectations, improving by 5.3% y-o-y to S$4,718mil. Revenue driven by a 4.1% y-o-y increase in passenger flown revenue to S$3,828mil with, a 13.8% y-o-y rise in passengers carried. Net profit was below estimates at 20% of our full year forecast and declined by 38.4% y-o-y to S$452mil due to rising costs and falling yield.
- - Read this at SGinvestors.io -
- We raised FY25e revenue forecast for SIA higher by 5.6% to S$19,374mil from the higher capacity but lowered our FY25e net profits forecast for SIA by 24% (S$1,799mil) to factor the weaker yields and higher fuel costs.
The Positives
Record 1Q group passenger load factor.
- - Read this at SGinvestors.io -
- We believe earnings are normalizing in the face of the fading pent-up demand. We pencil in 2% revenue growth in FY25e as more capacity has been added.
Uplifting restrictions from several markets.
- Read more at SGinvestors.io.
