SIA (SGX:C6L) delivered 1QFY26 operating profit of S$405mil (-13.8% y-o-y), broadly in line with expectations and tracking 28%/24% of DBS/consensus full-year forecasts.
Revenue rose 1.5% y-o-y to S$4,790mil, supported by record passenger volumes of 10.3mil (+6.9% y-o-y) and a 4.1% increase in passenger traffic. However, pricing softened across the board: group passenger yield fell 2.9% y-o-y to 10.0Scts per RPK, with Scoot’s 4.7% drop outpacing SIA’s 3.5% decline, though mitigated by Scoot’s high 91.5% load factor (+2.5ppt). Cargo remained lackluster, with yields down 4.4% and load factor slipping 0.8ppt to 56.9%.
Operating profit in line, but bottom-line misses sharply on Air India losses.
- Read this at SGinvestors.io -
- Read this at SGinvestors.io -
a negative S$122mil swing in contributions from associates and JVs, driven mainly by deeper-than-expected losses at Air India, which SIA began equity accounting from December 2024.
Excluding the share of losses from associates, net profit would have declined by a smaller 32% y-o-y to around S$308mil.
Yields are expected to continue trending downwards, albeit at a more gradual pace.
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
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