Singapore Airlines - DBS Research 2026-07-31: Cost Recovery Potential Appears Largely Priced In

• 1QFY27 results missed sharply as fuel cost surge overwhelms record revenue; risk/reward remains neutral

• SIA (SGX:C6L)'s reported 1QFY27 operating profit of S$106mil (-73.8% y-o-y), missing DBS and consensus estimates by 57% and 62%, respectively.

1QFY27 results came in notably below expectations.

• - Read this at SGinvestors.io -

• Passenger traffic remained healthy (+6.3% y-o-y), while passenger yields increased 12.0% y-o-y to 11.2 cents per RPK. Cargo also performed strongly, with revenue rising 33.5% y-o-y on a 28.1% increase in yields and an improved load factor of 58.8% (+1.9ppt y-o-y).

• - Read this at SGinvestors.io -

• The Group also recognised S$42mil higher losses from Air India, partly offset by a one-off accounting gain arising from the reconciliation of management accounts with the final audited financial statements. Together with a lower effective tax rate which partially cushioned the earnings impact, resulting in a net loss of S$76mil versus a net profit of S$186mil in the prior year.

Demand remains resilient, allowing SIA to continue expanding its network.

• Read more at SGinvestors.io.

Jason Sum DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-07-31

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