---
title: "Part 1: Beginner’s Guide to Singapore Airlines (SIA) –"
type: "Topics"
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url: "https://longbridge.com/en/topics/100000000827126.md"
description: "✈️  Understanding Earnings, Profits, and Why Changi Airport’s Expansion Could Benefit the CompanySingapore Airlines (SGX: C6L) is one of the world’s leading premium airlines and is also Singapore’s na..."
datetime: "2026-07-31T07:42:31.000Z"
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---

# Part 1: Beginner’s Guide to Singapore Airlines (SIA) –

**✈️  Understanding Earnings, Profits, and Why Changi Airport’s Expansion Could Benefit the Company**

Singapore Airlines (SGX: C6L) is one of the world’s leading premium airlines and is also Singapore’s national carrier. As a beginner investor, one of the first things I learned was that an airline’s value is not just about today’s profits—it is also about its future growth. One of the biggest long-term growth projects for Singapore is the expansion of Changi Airport through the construction of **Terminal 5**, which could create more opportunities for Singapore Airlines over the next decade.

In this article, I will explain in simple terms how SIA earns money, what earnings and profits mean, why Changi Airport’s expansion matters, and why I have been trading SIA shares while investing for the long term.

**🌍 What is Singapore Airlines?**

Singapore Airlines is much more than an airline flying passengers around the world. The company operates:

-   Singapore Airlines (full-service airline)
-   Scoot (low-cost airline)
-   Cargo services
-   Engineering and maintenance services
-   Catering and aviation-related businesses

This means SIA earns income from several different businesses instead of relying only on passenger tickets.

**💰 How Does Singapore Airlines Make Money?**

Every day, SIA operates hundreds of flights across Asia, Europe, Australia, and the United States.

Its main sources of revenue include:

✈️ Economy Class tickets

💺 Premium Economy tickets

👔 Business Class tickets

👑 First Class tickets

📦 Air cargo

💼 Excess baggage fees

🎫 KrisFlyer partnerships and other aviation services

For example, if one aircraft carries 300 passengers with an average ticket price of S$1,000, passenger revenue alone would be around **S$300,000** before adding cargo and other services.

Multiply this by hundreds of daily flights and it is easy to understand why SIA generates billions of dollars in annual revenue.

**📈 Revenue Is Different From Profit**

Many beginners think high revenue automatically means high profit.

That is not always true.

Suppose SIA earns S$100.

Its expenses may include:

-   Fuel
-   Staff salaries
-   Airport charges
-   Aircraft maintenance
-   Aircraft depreciation
-   Catering
-   Insurance

If expenses total S$95, the company only earns S$5 in profit.

This is why investors pay close attention to costs, especially fuel prices.

**📊 What Are Earnings?**

Earnings simply mean the company’s **net profit** after paying all operating expenses, taxes and financing costs.

For example:

Revenue:S$20 billion

Expenses:S$18 billion

Net earnings:S$2 billion

Growing earnings usually indicate that the company is operating efficiently and demand remains healthy.

**✈️ Why Changi Airport’s Expansion Matters**

One of the reasons I remain positive about SIA over the long term is Singapore’s investment in **Changi Airport Terminal 5**.

When completed, Terminal 5 will significantly increase the airport’s passenger capacity.

This creates opportunities for Singapore Airlines because the airline may be able to:

✅ Add more flights

✅ Open new destinations

✅ Increase flight frequencies

✅ Carry more passengers

✅ Expand cargo operations

As one of Changi Airport’s largest airlines, SIA is expected to benefit if global travel demand continues growing.

**🌏 More Capacity Means More Growth Potential**

Imagine SIA currently operates a certain number of flights every day.

If airport capacity increases and demand remains strong, SIA could gradually expand its network.

That means:

✈️ More aircraft flying

👨‍👩‍👧‍👦 More passengers

📦 More cargo

💰 Higher revenue potential

Although expansion alone does not guarantee higher profits, it gives SIA room to grow over the long term.

**💼 Why Investors Watch Earnings Closely**

Strong earnings can support:

-   Dividend payments
-   Fleet expansion
-   New aircraft purchases
-   Share buybacks (if announced)
-   Long-term business growth

However, investors should also monitor:

-   Fuel prices
-   Economic conditions
-   Travel demand
-   Competition
-   Exchange rates

These factors can all influence SIA’s future profitability.

**📖 My Personal Trading Journey with SIA**

Besides investing for the long term, I also enjoy doing short-term trades when I see opportunities.

One of my trades was buying **100 shares at S$6.56**. As the company continued to recover and investor sentiment improved, I later **sold 200 shares at S$7.69**, locking in a gain.

After taking profits, I have now placed another **buy limit order at S$7.60**. If the market pulls back and my order is filled, I am happy to accumulate SIA shares again at a slightly lower price.

I do not try to predict every short-term movement. Instead, I buy when I believe the valuation is reasonable, take profits after a meaningful rise, and patiently wait for another opportunity.

I jokingly call these trades my **“meal money”** because the profits can help pay for my daily meals while I continue building my long-term investment portfolio.

**🎯 My Trading Summary**

📈 Bought 100 shares at **S$6.56**

💰 Sold 200 shares at **S$7.69**

📉 Current buy limit order placed at **S$7.60**

🍜 My goal is to earn small, consistent trading profits while still believing in SIA’s long-term growth story.

**🎓 Beginner’s Summary**

As a beginner investor, I believe Singapore Airlines has several attractive qualities:

-   Strong global brand.
-   One of the best premium airlines in the world.
-   Benefits from Singapore’s position as an international aviation hub.
-   Potential long-term growth from Changi Airport Terminal 5.
-   Opportunity to grow passenger numbers, cargo operations and global routes.
-   Regular dividend potential when earnings remain healthy.

At the same time, I understand that investing always carries risks. Fuel prices, economic slowdowns and weaker travel demand can all affect profits and the share price. That is why I combine **long-term investing with disciplined trading**, taking profits when prices rise and patiently waiting for attractive opportunities to buy again.

For me, SIA is both a quality long-term company and a stock that occasionally offers good short-term trading opportunities. By staying patient and following my plan, I hope to let both dividends and capital gains contribute to my investment journey.

### Related Stocks

- [C6L.SG](https://longbridge.com/en/quote/C6L.SG.md)
- [S59.SG](https://longbridge.com/en/quote/S59.SG.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**