First Read: Singapore Airlines "Mar-Q FY3/26 review: Brace for turbulence"

Research evidence excerpt

First Read: Singapore Airlines "Mar-Q FY3/26 review: Brace for turbulence"

Global Research

15 May 2026ab

First Read

EquitiesSingapore Airlines

Mar-Q FY3/26 review: Brace for turbulence Singapore

Airlines

12-month rating Neutral

We see earnings headwinds ahead following a tranquil quarter

In Mar-Q, margin came in better than expected largely due to demand surge in March as 12m price target S$6.70

significant reduction in operating capacity by Gulf carriers drove traffic share gain in

European routes, and significantly lower than expected fuel cost as hedge gain was

Price (15 May 2026) S$6.42

recognised sooner than the adjustment of the pricing of fuel bill. Coming out of a

tranquil quarter, we are wary of earnings headwinds including significantly higher jet RIC: SIAL.SI BBG: SIA SP

fuel price and Air India's losses. Additionally, potential capital injection to loss-making Trading data and key metrics

Air India (as reported by local media) could be an overhang. That said, we believe

52-wk range S$7.60-6.26

6% dividend yield for FY3/26 should at least provide some degree of share price

Market cap. S$19.0b/US$14.9b

support, on the back of its balance sheet strength (operating at 15.7% net debt to

Shares o/s 2,963m (ORD)

equity ratio in FY3/26) which provides the company flexibility for capital allocation. At

the current share price, we see balanced risk reward. We remain Neutral. Free float 42%

Avg. daily volume ('000) 8,261

Higher fuel cost and Air India losses weighing on coming quarters Avg. daily value (m) S$54.9

Higher jet fuel price and Air India losses appear to be the two biggest challenges facing Common s/h equity (03/27E) S$16.7b

SIA. Since the conflict on 28 Feb, the average jet fuel price was US$190/bbl, vs US$93/ P/BV (03/27E) 1.1x

bbl pre-war.