- SATS's 1QFY26 core PATMI of S$70.5mil (+20.0% y-o-y) exceeded expectations, forming 27.5% of the street’s full-year projection, supported by robust air cargo volumes amid more frontloading of tariffs and an uplift in both ground and cargo handling unit revenue.
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Cargo strength lifts earnings
- During the period, SATS saw higher cargo tonnage, with regional strength led by Europe, which also saw stronger flows into Latin America, while Asia remained resilient (+10.4% y-o-y; EMEAA +21.1%, APAC +6.6%, Americas +1.0%), and flights handled climbed by 2.5% y-o-y.
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- Meanwhile, Food revenue rose 5.6% y-o-y to S$328.3mil, as increased aviation food volumes (+7.9% y-o-y), coupled with higher non-aviation food ASPs (+12.1% y-o-y), more than offset an 11.0% y-o-y decline in non-aviation meal volumes due to consolidation of its central kitchens in China.
Both divisions saw an increase in operating margins.
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