Broker Name: CGS International Securities
Date of Report: February 13, 2026
Excerpt from CGS International Securities report.
- Singapore Airlines (SIA) fundamentals have improved: The broker estimates a strong rebound in 3QFY26 core net profit (S\$350m-400m), up from S\$239m for 1HFY26, driven by robust demand and stabilising passenger yields across premium cabins in Asia.
- Industry outlook is positive: The broker upgrades SIA to Hold, citing IATA’s projection of flat global passenger yields in 2026 and a backlog in aircraft deliveries limiting capacity additions, supporting pricing.
- Forecasts raised: CGS International increases FY26-28F core net profit forecasts by 20-70% (to S\$900m-S\$1.1bn) and lifts the target price to S\$7.23, reflecting improved yield assumptions and a weaker US\$/S\$ exchange rate.
- ESG and sustainability initiatives: SIA targets net zero carbon emissions by 2050, plans to use sustainable aviation fuel (SAF), and participates in global carbon offset schemes. The airline is also involved in solar energy and reduces waste through innovative meal concepts.
- Risks noted: Upside risk is stronger-than-expected yields; downside risk is higher oil prices driven by geopolitical tensions.
- Financial highlights: Revenue growth is steady, but net profit is forecast to drop in FY26 before recovering. Dividend payout ratios remain high, with increased DPS assumptions for FY27-28.
- Sector comparison: SIA’s valuation and profitability are broadly in line with other full-service carriers, with a strong market position in Asia.
Report Summary
- Singapore Airlines is seeing improved financial performance and industry conditions, prompting upgraded profit forecasts and a higher target price.
- The airline is actively pursuing ESG goals, including net zero emissions, and continues to innovate in operational efficiency and sustainability.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com
