Singapore Airlines half-year revenue rises, but profit weighed down by fuel costs

Overview

• Singapore carrier's half-year revenue rose 16.8% yr/yr on strong passenger and cargo demand

• Net profit for half-year fell 43.9% as higher fuel costs weighed on earnings

• Company cites elevated jet fuel prices as key factor in profit decline

Outlook

• Company expects continued uncertainty in operating environment due to Middle East conflict

• Company says it will monitor Middle East geopolitical situation and adjust schedules as needed

• SIA defers launch of Riyadh flights to March 2027 due to Middle East conflict

Result Drivers

• PASSENGER AND CARGO DEMAND - Co said revenue growth was driven by record passenger carriage and higher yields in both passenger and cargo segments

• FUEL COSTS - Co said higher fuel costs, driven by elevated jet fuel prices amid Middle East conflict, weighed on profit

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the airlines peer group is "buy."

• Wall Street's median 12-month price target for Singapore Airlines Ltd is S$7.20, about 0.8% above its November 10 closing price of S$7.14

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• Nov 11 - Cathay Pacific orders 14 Airbus aircrafts to expand its fleet

• Nov 10 - Australia's Qantas to axe 850 jobs in offshoring deal with Accenture

• Nov 9 - Forward Air's Q3 revenue, EBITDA rise

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)