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Delivery Delays Of Boeing 777 Will Limit Capacity And Compress Future Margins

Update shared on 14 Oct 2025

Fair value Decreased 1.14%
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AnalystConsensusTarget's Fair Value
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1Y
2.0%
7D
-0.8%

Analysts have adjusted their fair value estimate for Singapore Airlines slightly downward from $6.39 to $6.32. This reflects nuanced changes in key business assumptions and profit expectations.

What's in the News

  • August 2025 operating results show year-on-year growth. Available seat-kilometres increased to 15,450.8 million, revenue passenger-kilometres rose to 13,602.6 million, and passengers carried reached 3,578,400, with passenger load factor at 88.0% (Announcement of Operating Results).
  • July 2025 group results reflect stronger performance versus last year, including 3,540,700 passengers carried, 15,219.5 million available seat-kilometres, 13,466.2 million revenue passenger-kilometres, and improved cargo and mail carried at 98.6 million kg (Announcement of Operating Results).
  • First quarter ending June 30, 2025 shows increases across key metrics. Available seat-kilometres grew to 35,028.6 million, revenue passenger-kilometres increased to 30,336.2 million, and 6,822,000 passengers were carried with a passenger load factor of 86.6% (Announcement of Operating Results).

Valuation Changes

  • Fair Value Estimate: Lowered marginally from SGD 6.39 to SGD 6.32.
  • Discount Rate: Reduced slightly from 9.24% to 9.14%.
  • Revenue Growth: Decreased moderately from 1.68% to 1.62%.
  • Net Profit Margin: Improved from 5.52% to 5.57%.
  • Future P/E Ratio: Declined from 22.56x to 21.38x.

Disclaimer

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