- 1Q27 revenue increased 19.3% YoY to S$5,714mn, forming 27% of our full-year estimates and exceeding our expectations. PATMI declined S$262mn YoY to -S$76mn. Fuel expenditure (+78.5% YoY) and associate losses weighed on earnings.
- 1Q27 revenue rose 19.3% YoY to S$5,714mn, due to an 18.6% increase in passenger revenue (yields up 12.0%) and a 33.5% jump in cargo revenue (cargo yields up 28.1%). The group carried 10.9mn passengers (+6.3% YoY), though passenger load factor eased 0.5 ppts to 87.1% as capacity growth (+5.9%) outpaced traffic growth (+5.3%). We believe this is indicative of SIA capturing volume from the rerouted Middle East traffic.
- We maintain NEUTRAL with higher TP of S$7.35 (prev. S$6.43). Despite sector headwinds, SIA has demonstrated strong core operating performance relative to peers, underpinned by materially lower leverage (FY27e net debt/EBITDA: 0.4x vs. 1.0x - 1.9x among peers), which we believe supports greater resilience to fuel and associates-related volatility. We raise our target P/B multiple 2 S.D. above peer mean to 1.4x (prev. 1.1x).
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