SIA Revenue Record High & Yield Recovery! Is It Entering Second Spring?

Tiger_SG
02-26
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This Wednesday, $SIA(C6L.SI)$ surged to a seven-month intraday high of S$7.19. Despite intensifying industry competition and downward pressure on pricing, SIA's Passenger Yield unexpectedly staged a turnaround. Is this a short-term technical bounce, or the starting gun for a new bull cycle?

1. Record Revenue vs. "Halved" Profit? The Biggest Surprise is Yield Pivot

According to the 3QFY2026 (third quarter) results, SIA delivered a set of paradoxical figures:

  • Revenue: Reached S$5.51 billion, up 5.5% year-on-year, setting a new quarterly record.

  • Net Profit: S$505 million, a year-on-year plunge of 68.9%.

The profit crash was not due to poor operations, but rather a high base effect. Last year’s quarter included a S$1.1 billion one-off accounting gain (primarily from the Vistara disposal). If strip out these one-off items, SIA’s operating profit actually grew by nearly 26%.

Highlight: Passenger Yield staged a turnaround.

Over the past year, as global aviation capacity recovered and low-cost carriers (LCCs) ramped up competition, airfares have faced significant downward pressure. However, SIA’s passenger yield grew 1.9% year-on-year this quarter.

This suggests SIA has regained pricing power. Whether it is the inelastic demand for Business Class or premium holiday travel, SIA remains one of the few airlines capable of making passengers pay a premium for the "Singapore Girl" brand.

2. Stock Falls After New High: What is Market Worried About?

SIA loses 1% after yesterday's new high. Despite the glittering revenue, SIA is not without its challenges. When compared to Asia-Pacific peers, market consensus remains divided.

Associates "Dragging the Chain"

This quarter, SIA recognized S$178 million in losses from associated companies, largely driven by Air India. The integration pains of the Indian market are lasting longer than expected, becoming a primary "black hole" for net earnings.

Soft Cargo Demand:

Cargo revenue fell 5.4% year-on-year, reflecting uncertainty in global trade recovery, creating a stark contrast to the booming passenger segment.

3. Institutional Outlook: A Tug-of-War Between Bulls and Bears

In the face of this rally, top investment banks have offered sharply different advice:

DBS Group Research:

Bullish (Hold/Buy bias, target prices adjusted toward S$6.50–$7.20 range) DBS views the yield improvement as a "inflection point" signal. Analyst Tabitha Foo noted that SIA's Premiumisation strategy is paying off, and this pricing edge is expected to hold through Q4, offsetting cargo weakness.

Citi Research:

Bearish (Maintaining "Sell" rating, target price S$6.28) While analyst Kaseedit Choonnawat admitted performance exceeded expectations and expected a positive short-term market reaction, he remains concerned about long-term competitive pressures and Air India's uncertainty. Citi believes the current stock price has already priced in the good news.

  • Is it too late to buy in or good news already priced in?

  • Do you think Air India’s losses are "temporary growing pains"?

  • How much longer can SIA’s "High-Price Strategy" be sustained?

Leave your comments to win tiger coins!

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SIA Record Revenue! But Profit Declines, Does One-Off Effect Matter?
Singapore Airlines has reported a record quarterly revenue of $5.51 billion for 3QFY2026, an increase of 5.5% over the year-earlier period. However, earnings for the same quarter, at $505 million, was down 68.9% y-o-y as the year-earlier quarter was distorted by a one-off accounting gain of $1.1 billion.
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Comments

  • Shyon
    02-26
    Shyon
    This week, my focus is on $SIA(C6L.SI)$ after it hit a seven-month high of S$7.19. While net profit plunged due to last year’s one-off gain, the core business actually improved. Record revenue and a 1.9% rise in passenger yield stand out to me — in a competitive environment, regaining pricing power signals real strength in SIA’s premium positioning. To me, that yield pivot is the most important indicator this quarter.

    Of course, risks remain. Losses from Air India and weaker cargo demand are clear drags. I see Air India more as long-term strategic pain rather than structural damage, but the timeline for improvement will be key to sentiment.

    At current levels, I think much of the good news is priced in. I’m cautiously constructive — not chasing highs, but open to accumulating on pullbacks if yield momentum sustains.

    @TigerClub @TigerStars @Tiger_comments @Tiger_SG

  • koolgal
    02-28
    koolgal
    🌟🌟🌟It is so heartening to see that Singapore Airlines $SIA(C6L.SI)$ taking off to  the skies with a 7 month high of SGD 7.19.  This is a validation of a Singapore icon that never lost its core identity even in the toughest of skies.

    SIA has just delivered a breathtaking SGD 5.51 billion in its latest quarterly revenue - the highest ever recorded.  With a 87.5% load factor, customers are choosing the SIA Experience as a great way to fly, paying extra for the premium experience.

    The SGD 178 Millon hit from Air India is simply the cost of building a global aerial empire.  It is expected that by 2028, Air India may become the ultimate "alpha engine" of growth for SIA.

    With a current dividend yield of 4.8%, investors receive a great source of passive income while waiting for capital growth ahead.

    As a Singaporean, I am proud of how far SIA has come from its humble beginnings in 1972 to be a global superstar.

    @Tiger_SG @Tiger_comments @TigerStars @TigerClub @CaptainTiger

  • Huat99
    02-26
    Huat99
    $SIA(C6L.SI)$ SIA just posted its Q3 earnings, and market sentiment is leaning Neutral to Bullish! ✈️

    Despite a 69% plunge in headline net profit due to missing one-off gains and Air India losses, the core business is actually flying high. Bulls are cheering a record $5.5B in quarterly revenue and a 26% jump in operating profit driven by robust travel demand. 📈

    Will SIA's strong operating performance and passenger demand outweigh the pressure of rising fuel costs for your portfolio?👇
    Monthly Chart TA: https://ttm.financial/post/536451537248992
    @Tiger_SG @TigerStars @Tiger_comments
  • Tiger_CashBoostAccount
    02-27
    Tiger_CashBoostAccount
    Congratulations. For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

    Find out more here.

    Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
    Click to access the activity

    Other helpful links:

  • 這是甚麼東西
    02-27
    這是甚麼東西
    3.维持“高价策略”
    新航正在从简单的高定价转向人工智能驱动的收入管理，以在成本上升的情况下保持利润率。
    人工智能动态定价：新航正在走向持续定价，使用人工智能根据确切需求实时调整票价，而不是传统的固定票价桶。
    可持续发展附加费：从2026年10月开始，高级机票的SAF（可持续航空燃料）税将增加41.60新元，测试乘客忠诚度。
    市场弹性：尽管票价较高，但新航仍保持着主导的客座率，因为全球“高端旅行”细分市场对价格的敏感度仍然低于廉价市场。
  • 這是甚麼東西
    02-27
    這是甚麼東西
    2. Air India’s Losses: "Temporary Growing Pains"?
    While TATA is committed to the long term, these pains have evolved into a full-scale crisis that has delayed the original recovery timeline.
    Widening Deficit: Annual losses are projected to hit a record $1.6 billion (₹15,000 crore) for FY26. Operational Setbacks: The 2025 Boeing 787 crash damaged brand trust and forced expensive fleet groundings.
    Geopolitical Costs: Ongoing airspace closures (e.g., Pakistan) force detours that add roughly ₹400 crore in annual fuel costs. Delayed Profitability: Management's 5-year turnaround plan was recently rejected by the board, indicating that "temporary" pains may last several more years.
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