Singapore Airlines (SIA)’s March 26 operating data were exceptionally strong due to spillover from Middle Eastern carriers, who are key competitors to SIA along the Asia-Europe corridor, as capacity through Middle East air hubs was affected by the on-going conflicts in the Middle East.
Pax load rose 14.7% y-o-y; pax load factor of 90.6% a new record.
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Mar 26 pax load factor stood at 90.6% (SIA: 90.3%, Scoot: 91.7%), also a new monthly record.
Cargo load rose 2.4% y-o-y
Cargo load rose 2.4% y-o-y, supported by spillover volumes amid disruption to the Middle East airspace, despite the 1.3% y-o-y drop in cargo capacity. As a result, the group’s cargo load factor improved 2.1ppt to 59.0%.
Raise 4QFY26 earnings forecast to S$553m (previously S$295m).
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Strong Mar 26 operation data
Sky-rocked jet fuel prices have yet to hit SIA in Mar 26....
Despite the surge in jet fuel prices following the US-Iran war, SIA’s fuel uplift in Mar 26 was still largely based on contract prices that were fixed in February (we note that there tends to be a delay of three weeks or so between fuel purchasing and uplift to the fleet).
…but SIA can book substantial gains from its fuel hedging contracts.
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Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
