- SIA (SGX:C6L)’s 1HFY26 revenue grew 1.9% y-o-y to a record S$9.7b. Passenger flown revenue rose 15% y-o-y to S$7.8m. Traffic growth of 4.6% outstripped capacity expansion of 3%; consequently, passenger load factor (PLF) improved 1.3 percentage points (ppt) to 87.7%.
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- Meanwhile, cargo revenue declined 2.8% y-o-y to S$1.1b. Despite an inflection in yields, cargo load factors inched down 0.9ppt to 56.5% as capacity expansion of 2.8% outpaced a 1.2% increase in cargo loads.
Bottom line misses expectations on losses from Air India.
- Total expenditure grew in tandem with revenue, up 2% y-o-y to S$8.9m. A 5.9% increase in non-fuel expenditure (driven by higher depreciation of new aircraft and maintenance costs) offset a 6.7% improvement in net fuel costs (on lower fuel prices and US$ weakening). As a result, operating profit nudged up 0.9% y-o-y to S$802.9m.
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- 1HFY26 revenue and PATMI constituted 49.5% and 34.2% of our initial full year forecasts, respectively. Ex-Air India, SIA’s performance was commendable, in our view.
Special goodies for investors need to be contextualised.
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