A few years ago, investing in aviation stocks was largely a bet on the recovery of global travel after COVID-19. That recovery has largely played out.
In 2025, Changi Airport handled a record 69.98 million passenger movements, surpassing the previous record of 68.3 million in 2019. For the first seven months of 2026, passenger movements reached 40.7 million.
For investors, the question today is less about whether air travel will recover, and more about how aviation companies can grow from here.
Singapore investors have several ways to gain aviation exposure. Singapore Airlines is the most direct airline play. SATS provides ground handling, air cargo and food solutions. SIA Engineering focuses on aircraft maintenance, repair and overhaul (MRO), while ST Engineering has a sizeable Commercial Aerospace business.
In this week’s edition of 4 Stocks This Week, we look at four SGX-listed companies in the aviation space.
Why Invest In Airline & Aviation Stocks?
Investors do not necessarily have to invest directly in an airline to gain exposure to aviation.
Airlines such as Singapore Airlines make money mainly from passenger and cargo flights. SATS earns by supporting flights through cargo handling, ground handling, and catering, while SIA Engineering earns by maintaining aircraft and engines.
These businesses can perform quite differently.
An airline may benefit from higher ticket prices and strong travel demand but still see profits fall when fuel costs rise. An MRO company, on the other hand, may benefit from more aircraft flying and more maintenance work.
Singapore Airlines Ltd (SGX: C6L)
Singapore Airlines (SIA) (SGX: C6L) operates the full-service Singapore Airlines brand and the low-cost carrier Scoot.
For FY2025/26, SIA reported record revenue of S$20.52 billion, up 5.0% from the previous year. Operating profit increased 39.0% to S$2.38 billion, helped by healthy travel demand, higher passenger yields and lower full-year net fuel costs. SIA and Scoot also carried a record 42.4 million passengers during the year.
However, net profit fell 57.4% to S$1.18 billion. The main reason was that the previous year’s earnings included a S$1.1 billion one-off accounting gain from the Air India-Vistara merger. SIA also recognised its share of Air India’s losses in FY2025/26.
Following Vistara’s merger with Air India in November 2024, SIA owns 25.1% of the enlarged Air India Group. As at 31 March 2026, SIA’s investment in Air India had a carrying value of about S$1.13 billion, while its share of Air India’s losses for FY2025/26 amounted to S$945.2 million.
Despite these losses, SIA has said it remains committed to its investment in Air India, which it sees as part of its long-term strategy to gain direct exposure to India’s fast-growing aviation market.
SIA’s latest quarter also shows how quickly airline earnings can change.
For 1Q FY2026/27, revenue increased 19.3% year-on-year to a record S$5.71 billion. SIA and Scoot carried 10.9 million passengers, while passenger yields increased 12.0%. Despite this, the Group recorded a net loss of S$76 million, compared with a S$186 million profit a year ago.
Net fuel cost increased 78.5% to S$2.25 billion as jet fuel prices rose sharply following the Middle East conflict. Operating profit fell 73.8% to S$106 million, while a higher share of losses from Air India also weighed on earnings.
For investors, SIA remains the most direct way to invest in air travel growth through the SGX. But its latest quarter also reminds investors that strong passenger demand does not always mean higher profits.
Read Also: Salary Guide To How Much You Can Earn As A Singapore Airlines (SIA) Air Stewardess/Air Steward
SATS Ltd (SGX: S58)
SATS (SGX: S58) today is a much more global business than it was a few years ago.
Its 2023 acquisition of Worldwide Flight Services (WFS) transformed SATS into the world’s largest air cargo handler. The combined network now spans more than 225 stations across 27 countries. This means SATS is no longer simply tied to passenger traffic at Changi Airport.
For FY2025/26, SATS reported record revenue of S$6.35 billion, up 9.0% year-on-year. Net profit attributable to shareholders rose 17.0% to S$285.2 million, while operating profit increased 14.2% to S$543.3 million. SATS also increased its full-year dividend to 7.0 cents per share, from 5.0 cents the year before.
Its latest 1Q FY2026/27 results continued that growth. Revenue increased 11.3% year-on-year to S$1.68 billion, while net profit rose 6.0% to S$75.1 million.
Gateway Services, which includes cargo and ground handling, remained the main contributor. Revenue from the segment increased 12.8% to S$1.33 billion. Food Solutions revenue grew 5.4% to S$346.0 million.
One number investors may want to watch is operating margin. While operating profit increased 6.8% to S$133.8 million, operating margin slipped from 8.3% to 8.0%, with SATS pointing to Middle East-related disruptions and inflationary pressures.
For investors, SATS offers exposure to global air cargo and airport services, not just Singapore aviation. This also means its earnings are more exposed to global trade conditions and overseas operating costs.
SIA Engineering Company Ltd (SGX: S59)
SIA Engineering Company (SIAEC) (SGX: S59) is the aircraft maintenance arm of the SIA Group. Unlike SIA, its business does not depend directly on selling airline tickets. It earns money by maintaining aircraft, engines and components for airlines.
For FY2025/26, SIA Engineering’s revenue increased 14.3% to S$1.42 billion. Operating profit more than doubled to S$29.4 million, while net profit rose 21.0% to S$168.9 million. Its associates and joint ventures contributed S$145.3 million in share of profits during the year. Shareholders also received a higher full-year dividend of 11.0 cents per share, compared with 9.0 cents in FY2024/25.
Its latest 1Q FY2026/27 results were more mixed. Revenue fell 8.6% year-on-year to S$327.6 million. Operating profit improved from S$5.1 million to S$13.2 million, but net profit declined 6.1% to S$40.3 million because of lower contributions from associates and joint ventures.
Singapore Technologies Engineering Ltd (SGX: S63)
ST Engineering (SGX: S63) differs from the other three companies on this list because it’s not a pure aviation play. The Group operates across Commercial Aerospace, Defence & Public Security, and Urban Solutions & Satcom. Investors therefore get exposure to aviation alongside other businesses.
For 1H2026, ST Engineering reported revenue of S$6.57 billion, up 11% year on year. Net profit increased 27% to S$512 million. Its order book also reached a record S$35.7 billion as at 30 June 2026, giving the Group good revenue visibility.
ST Engineering also raised its quarterly dividend to 5.0 cents per share for 2Q2026, payable on 4 September 2026. The Board has indicated another planned 5.0-cent dividend for 3Q2026.
Taking To The Skies
Singapore’s aviation industry has come a long way from the pandemic.
Passenger traffic at Changi Airport has surpassed its previous 2019 record, while the four companies covered here continue to invest in aircraft, airport services, MRO capacity and aerospace capabilities.
But the latest results also show that these four stocks should not be viewed in the same way.
SIA is enjoying strong passenger demand but remains highly sensitive to fuel prices. SATS has become a global aviation services and cargo business. SIA Engineering is expanding its MRO footprint across the region, while ST Engineering gives investors aviation exposure as part of a broader engineering and defence group.
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