Link: https://links.sgx.com/1.0.0/corporate-announcements/AUQU7VHWZS94X44Z/2e82ad04c97ff0820d7ef61a24d476b5b5c28c6774625bc7dec103ee51284102

Summary:

• Scoot yields: Down 8% YoY in Q2, mainly due to new destination launches (supply absorption) and forex headwinds; group expects moderation in decline as new routes mature and demand proves strong.

• Air India strategy: SIA committed to supporting Air India’s transformation via engagement and expertise. Investment viewed as long-term; equity accounting used for losses. Maximum investment/loss tolerance not disclosed; confident in continued support and board-level engagement.

• Qantas long-haul competition: SIA expects competitive advantage to remain, given its fleet flexibility and significance in target markets despite new ultra-long-haul pressures.

• Interim dividend vs capital return: Capital return is based on SIA’s strong cash position (S$8.5B), not a direct response to lower interim dividend.

• Aircraft delays (Boeing 777-9): Flexibility built into fleet plans—older aircraft may be retained longer, operational impact minimal; compensation details undisclosed.

• Non-fuel cost increases: Mainly from depreciation, leased charges, handling, passenger costs, and airport fees.

• Fleet/AOG issues: Scoot grounded avg. 6.5 aircraft (Pratt & Whitney engine); mitigated by extending older A320neos and introducing Embraer E190-E2s. SIA's Rolls-Royce AOG is within provisioned expectations.

• China/market recovery: Load factors on China routes have returned to pre-pandemic levels; overall network performing strongly, though market-specific variations remain.

• Jetstar Asia exit: Scoot added new destinations and capacity to fill gaps. Some Jetstar staff recruited; SIA Group continues to expand SG hub.

• Product pipeline: New First/Business Class products to be unveiled 1H2026; A380 already fully retrofitted, no further plans.

• Cost efficiencies and fleet tech: SIA's average aircraft age (~7 years) is half the industry norm, giving ~25% fuel efficiency improvement; KPIs monitored internally.

• Future demand outlook: Travel demand stable with increased competition; SIA expects passengers to keep flying.

The session covered strategic positioning, response to competition, financial resilience, operational flexibility, and commitment to core and emerging markets.