We maintain NEUTRAL with higher TP of S$7.00 (prev: S$6.04). The P/B multiple has been raised from 1.2x to 1.3x to trade in line with peers. SIA's core passenger business remains resilient, with strong yield momentum and regional travel demand. Cargo underperformance is transitory, with recovery expected as external headwinds ease. However, Air India may continue to weigh on group earnings near term. Result at a glance Source: Company, PSR The Positives + Stronger YoY Q3 passenger travel performance. Group passengers carried in 3Q26 increased 6.3% YoY to 10.8mn. Passenger demand outpaced the ASK increase of 2.8%, leading to yields rising 1.9pp to 10.9%. The increase in passenger volume was likely due to shorter, high-frequency routes to Asia, which captured seasonally strong demand. As a result, Scoot’s 3Q26 operating profit jumped 160% to S$48mn.