Singapore Airlines' FY 2026 earnings outlook has likely improved, UOB Kay Hian's Roy Chen says in a research report. Based on a recent chat with management, the brokerage notes the near-term outlook for passenger yields might have stabilized.

This comes as a positive surprise as the brokerage had forecast passenger yields to slightly moderate over the next two quarters.

Passenger yields are expected to stabilize, supported by healthy passenger load factors during the year-end peak travel season.

The brokerage lifts its FY 2026 earnings forecast for SIA by 16%.

It upgrades the stock's rating to hold from sell and raises the target price to S$6.16 from S$6.10.

Shares are 1.52% higher at S$6.70 at 11:35 am, Feb 5.