Broker: CGS International
Date of Report: July 29, 2026
Excerpt from CGS International report.

Report Summary
Stock Focus: Singapore Airlines (SIA)
Ticker: SIA SP
Action: HOLD (No Change)
Target Price: S$7.65
Current Price: S$7.77
Upside/Downside: -1.5%
Key Takeaways:

• SIA reported a net loss of S\$76m for 1QFY27, with EBIT of S\$106m, both significantly below expectations due to inability to fully pass higher jet fuel costs to customers.
• The yield recovery from higher fuel costs was only about 38%, far short of the projected 64% recovery. SIA’s mainline carrier and Scoot both saw EBIT losses.
• Fuel prices spiked due to geopolitical tensions, but the US-Iran peace memorandum in June 2026 led to oil price corrections, expected to support a sequential recovery in 2QFY27.
• SIA’s P/BV multiple is at historical highs (+2 s.d. above mean since 2001), and the current target price represents the historical peak valuation.
• Upside risks: Continued strong travel demand, especially to Europe, as travelers avoid Middle East hubs due to ongoing tensions.
• Downside risks: Jet fuel price volatility if geopolitical violence resumes; net losses could widen for associates like Air India.
• FY27F net profit forecast is maintained at S\$808m, expecting improved profitability in coming quarters.
• SIA is investing over S\$15bn in fleet renewal and aims for net zero carbon emissions by 2050, with sustainable aviation fuel targets in line with Singapore government mandates.
• Dividend yield forecast for FY27F is 3.6%.

Actionable Insight:

• Investors should HOLD SIA at current levels, as the target price is below the current price and valuations are at historical highs.
• No change to prior forecast or recommendation; monitor fuel cost trends and geopolitical developments for future upside/downside.

Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
CGS International research website