SIA’s Q1 FY2025/26 earnings disappointed, with net profit plunging ~59% YoY to S$186M, far below market expectations. The biggest drag came from its first-time inclusion of Air India’s S$122M loss, post Vistara-Air India merger. Even with record passenger numbers and modest revenue growth, profitability was squeezed by falling yields, rising non-fuel costs, and weaker interest income.
Cargo revenue also dropped due to lower freight rates and tariff-related headwinds. While travel demand remains firm, macro and geopolitical risks add pressure.
I’m staying cautious. The stock could dip further post-dividend in August, and I’m watching closely to see if it finds support before considering any entries. Short-term bounce possible, but longer-term clarity is needed on Air India’s turnaround. 🛫📉
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