Broker: CGS International
Date of Report: April 15, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Singapore Airlines (SIA) (SIA SP, ADR: SINGY US)
- Rating/Action: Hold (Reiterate)
- Target Price: S\$6.80 (Raised from S\$6.77)
- Key Highlights:
- FY26F core EPS increased by 7% due to a lower-than-expected Air India loss.
- Passenger load factors (PLF) in March 2026 surged to 90.6%, matching historical highs, driven by disruptions to Middle East airlines from the US/Israel-Iran war and increased demand during the Easter period.
- SIA’s strong PLF creates room to raise ticket prices, partially offsetting the impact of extraordinarily high jet fuel prices.
- FY26F EBIT forecast remains at S\$2.3bn, with the surge in jet fuel prices expected to be partly mitigated by fuel hedging and higher ticket prices.
- Downside risk: If oil prices remain high post-war, SIA may not fully recover higher jet fuel costs—FY27F profit forecast is 34% lower YoY on this assumption.
- Upside risk: A sharp drop in oil prices if the war ends could boost earnings.
- Dividend Yield (FY26F): 3.81%.
- Temasek holds 55.7% of SIA.
- Implication: Hold maintained; investors should note the temporary nature of FY27F profit dip, with potential for recovery if oil prices normalize or competitive pressures ease post-conflict.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
