1QFY27 slips into red Quick Note

Research evidence excerpt

1QFY27 slips into red Quick Note

Global Markets Research

Singapore Airlines SIAL.SI SIA SP 29 July 2026

EQUITY: TRANSPORT/LOGISTICS

Rating1QFY27 slips into red Remains Reduce

Target price SGD 6.87 RemainsQuick Note

Closing price SGD 7.53 29 July 20261QFY27 earnings update

Singapore Airlines Group (SIA) reported 1QFY27 core losses of SGD76mn (from a 4Q

core profit of SGD412mn). The losses were mainly driven by higher fuel costs of 80% y-y

and significant losses from associate companies, particularly Air India (unlisted; amount Research Analysts

not disclosed). Jet fuel prices, which are typically priced on a lagged basis, experienced a Singapore Transport/Logistics

surge due to the Middle-East conflict that started on 28 February 2026. Fuel cost before Ahmad Maghfur Usman - NSM

hedging more than doubled (+118.7% y-y) this quarter on elevated fuel prices and higher ahmad.maghfurusman@nomura.com

consumption. The increase in gross fuel cost was partially reduced by a fuel hedging gain +603 2027 6892

of SGD376mn. This was offset by a lower tax expense (+SGD85mn). Passenger (pax) Research Associates

revenue came in at SGD4,582mn, up 18.6% y-y and 4.4% q-q driven by strong demand

Singapore Transport/Logisticsand yields. Overall pax yield was up 12% y-y/+15% q-q, coming in above our

Mishu Agarwal - NSFSPLexpectations. Cargo revenue was SGD708mn, up significantly by 34% y-y and +37% q-q

on the back of stronger yields amidst moderate capacity growth. Cargo yields

(SGD44.2cents/ltk) were up 28% y-y/+26% q-q. This led to the group’s 1QFY27 revenue

of SGD5,714mn (+19% y-y, +7% q-q), forming 28%/26% of our/Bloomberg consensus full-

year estimates.

Management briefing highlights

• 1QFY27 associate losses include a one-off accounting adjustment arising from the