Broker: DBS Group Research
Date of Report: 30 April 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: Singapore Airlines Ltd (SIA SP)
- Action: Maintain HOLD
- Target Price: SGD 6.50 (previously SGD 7.50)
- Key Idea: Despite Singapore Airlines’ strong network, premiumisation efforts, and robust hub positioning, the airline sector is facing significant margin compression due to an unprecedented spike in jet fuel prices (over 100% within weeks). Required fare hikes to offset fuel costs (~20–30%) are difficult to sustain. Operating profit estimates for FY27/28 are lowered by 31%/21% respectively. SIA remains best-positioned among APAC airlines but earnings will be pressured in the near term.
- Highlights:
- Jet fuel price assumptions: SGD 135/bbl for FY27F, SGD 105/bbl for FY28F.
- HOLD call is based on 4.7x EV/EBITDA FY27F, representing 0.5 standard deviation above five-year pre-COVID average.
- Risks include upside from stronger-than-expected yields or faster normalisation of fuel prices.
- Recommendation: Long dominant network players like SIA, short Chinese carriers due to structural disadvantages.
- Key Financials: Market Cap USD 15.6bn; Major Shareholder Temasek Holdings (50.4%).
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website : https://www.dbs.com
