Singapore Airlines (SIA) - UOB Kay Hian 2024-11-12: 1HFY25 Earnings Miss Expectations On Slightly Higher-than-expected Costs

• SIA’s 2QFY25 headline net profit of S$290m (-59% y-o-y, -36% q-o-q) came in below our guided range of S$360m-460m, due to slightly higher-than-expected operating costs.
• While pax travel and cargo demand are robust, SIA’s core profitability is likely to stay in an overall moderating trend in FY25-26, as pax and cargo yields remain under pressure amid an increased capacity supply.
• - Read this at SGinvestors.io -

SIA's 2Q/1HFY25 earnings missed expectations...

• Singapore Airlines (SIA)’s 2QFY25 headline net profit of S$290m (-59% y-o-y, -36% q-o-q) came in below our guided range of S$360m- 460m.
• Excluding non-core items such as gains/losses from fuel hedge, disposals and/or forex translation, 1HFY25 core net profit fell 41% y-o-y to S$669m by our estimate, forming 38% of our full-year forecast. This is deemed a miss, even though 2H could be seasonally stronger.
• - Read this at SGinvestors.io -

…due mainly to slightly higher-than-expected operating costs.

• Read more at SGinvestors.io.

Roy Chen CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-11-12 SGinvestors.io

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