Quick Note - Singapore Airlines (SIA SP) (Reduce) - Air India weighing on SIA’s earnings

Research evidence excerpt

Quick Note - Singapore Airlines (SIA SP) (Reduce) - Air India weighing on SIA’s earnings

Global Markets Research

Singapore Airlines SIAL.SI SIA SP 18 May 2026

EQUITY: TRANSPORT/LOGISTICS

RatingAir India weighing on SIA’s earnings Remains Reduce

Target price SGD 5.71 RemainsQuick Note

Closing price SGD 6.42 15 May 2026FY26 core earnings fall by 34% y-y

Singapore Airlines (SIA) group reported FY26 core earnings (Fig.1) of SGD1,155mn (-

34% y-y), accounting for 127% of our full-year FY26F forecast and 105% of the

Bloomberg consensus estimate, which we deem to be a beat. The decline was primarily Research Analysts

attributable to losses from associated companies (total SGD829mn loss) – mostly Singapore Transport/Logistics

attributable to a full-year of Air India losses (unlisted) (vs only estimate of four months in Ahmad Maghfur Usman - NSM

FY25). The group began equity accounting for Air India's financial performance from ahmad.maghfurusman@nomura.com

December 2024, following the full integration of Vistara into Air India. +603 2027 6892

1H26 passenger (pax) revenue came in at SGD16,666mn, up 5.2% y-y, on the back of Research Associates

stronger yields and passenger traffic. The group carried 42mn pax (+7.7% y-y), with the Singapore Transport/Logistics

group passenger load factor (PLF) increasing by 1.1pp to 87.7%. Overall pax yield was Mishu Agarwal - NSFSPL

higher by 1% y-y. Cargo revenue declined slightly by 2% y-y due to lower yields (-3.6% y-

y). On the cost front, non-fuel costs rose +5% y-y on the back of capacity expansion

(+4.7% y-y).

Briefing highlights

• Middle East crisis: Unlike other carriers that cut capacity, SIA maintained flights

(except to Jeddah, which was postponed) and captured displaced traffic, particularly

on long-haul Europe routes.