0706 GMT - Singapore Airlines' 1Q operating performance looks positive, Lorraine Tan, director at Morningstar, writes in a note. The June quarter's operating margin was strong, largely due to contained fuel costs from a weaker U.S. dollar, Tan says. Amid rising competition, SIA and Scoot attracted travelers through offering lower ticket prices, which was reflected in the uptick in passenger load factors, Tan notes. Lower fuel costs also offset declining yields. Prolonged losses at Air India may lead to increased investment by SIA, but if Air India is cash flow positive, it is less likely to drag on SIA's capital allocation, Tan adds. Morningstar raises its fair value estimate by 5% to S$6.40 after lowering its FY 2026 fuel cost projections. (kimberley.kao@wsj.com)

(END) Dow Jones Newswires

July 30, 2025 03:06 ET (07:06 GMT)

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