Singapore Airlines: 1Q FY26/27 a miss with yield and share gains offset by lagged fuel spike and Air India losses; stay Neutral, prefer Cathay

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Singapore Airlines: 1Q FY26/27 a miss with yield and share gains offset by lagged fuel spike and Air India losses; stay Neutral, prefer Cathay

J P M O R G A N Asia Pacific Equity Research

29 July 2026

Singapore Airlines

1Q FY26/27 a miss with yield and share gains offset by Neutral

lagged fuel spike and Air India losses; stay Neutral, SIAL.SI, SIA SP

prefer Cathay Price (28 Jul 26):S$7.77

Price Target (Mar-27):S$7.80

SIA delivered a mixed 1Q FY26/27, with record revenue of S$5,714MM (+19.3% Infrastructure, Industrials &

Y/Y) and robust Op-CF of S$1,360MM driving cash balances to S$10.5B, aligned Transport

with our preview (downgrade to Neutral). The group continued to post market Karen Li, CFA AC

share gains amid the Middle-East induced disruptions, carrying a record 10.9MM (852) 2800-8589

passengers (+6.3% Y/Y), and delivered double-digit yield expansion—passenger karen.yy.li@jpmorgan.com

yield up 12% Y/Y to 11.2c/pkm, Scoot yield up 20% Y/Y, and cargo yield up 28% Jenny Qiu, CFA

Y/Y. However, the headline miss on profitability was driven by higher net fuel (852) 2800 8503

costs, reflecting the lagged impact of the spike in jet fuel prices in March to early jenny.qiu@jpmorgan.com

May. Operating profit fell to S$106MM (–73.8% Y/Y), and net profit swung to a Neil Zhang

(852) 2800-8598

loss of S$76MM, further weighed by a higher non-cash loss from its minority stake neil.zhang@jpmorgan.com

in Air India (–S$42MM). Management noted that the recent easing in jet fuel prices

Sunny Su

since mid-May should provide a tailwind into the next quarter, and flagged healthy (852) 2800 8551

summer bookings and ongoing network and product investment. With the stock up sunny.su@jpmorgan.com

c.25% since May (vs. Straits Times Index +12%) and valuation now looking rich, Beatrice Lam