Broker: OCBC Group Research
Date of Report: 15 May 2026

Excerpt from OCBC Group Research report.

Report Summary

• Stock: Singapore Airlines (SIA SP EQUITY)
• Action: HOLD
• Target Price / Fair Value: SGD 6.65 (revised down from SGD 6.88)
• Last Close: SGD 6.27
• Key Highlights:
  • FY26 earnings per share (EPS) fell 57.0% to 38.4 Singapore cents, but beat expectations.
  • SIA is better positioned than peers to weather the ongoing Middle East conflict due to its hedging programme and robust balance sheet.
  • Management’s commitment to paying a special dividend signals confidence in its financial strength despite uncertainty.
  • Revenue grew 5.0% to a record SGD 20.5b, driven by strong passenger demand, while cargo revenue slipped 2.1%.
  • Full impact of higher fuel prices is expected in FY27; current hedging and fare adjustments will only partially offset this.
  • SIA’s 25.1% stake in Air India offers long-term potential, but turnaround remains delayed due to external factors.
  • Maintain HOLD due to low earnings visibility and high uncertainty, especially given geopolitical risks and fuel price volatility.
• Implications for Investors:
  • HOLD is recommended as the upside is limited (FV of SGD 6.65 vs. last close of SGD 6.27).
  • Special dividends and a strong balance sheet provide some downside support.
  • Monitor for potential catalysts such as network growth, favourable oil prices, and improvements at Air India.

Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website: https://www.ocbc.com/group/research