SIA’s 1QFY26 net profit fell by a sharp 58.8% y-o-y to S$186m and accounts for only 12% of MIBG’s/street’s full year forecasts. The poor performance was mainly dragged by lower interest income and share of losses of associates (notably from Air India).
Passenger yields under pressure from competition.
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Group passenger load factor inched up 0.7ppt to 87.6% as traffic growth of 4.1% exceeded capacity growth of 3.3%. However, we note that passenger yields narrowed further by 2.9% to 10 cents per revenue passenger-kilometre amid heightened competition as more airlines continue to add capacity industry-wide.
Cargo business faces an uncertain outlook.
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We believe the uncertainty over how the Trump Administration’s trade policies will evolve could hold back critical business decisions that drive economic activity, and with it the demand for air cargo going forward.
Pockets of opportunity after Jetstar closure.
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
