Airline stocks have been battered this year. With oil prices still high due to the U.S.-Iran conflict, jet fuel prices have soared. So, it came as a surprise when an airline services company did very well in its latest quarterly results.

SATS has several business segments, but it primarily serves customers at airports. It provides the food for airlines, handles the baggage transfers, helps customers get to their flights and handles air cargo. It operates in over 225 stations in 27 countries, and is headquartered in Singapore. 

Its gateway business segment is the biggest, contributing over 79% of its revenue in 4Q 2026. This segment handles cargo transport and ground services for airlines. Meanwhile, its food solutions can be divided into two categories - aviation and non-aviation. Most of its revenue is still derived from Singapore (37% of revenue), followed by the Americas (33%), Europe and the Middle East (19%) and Asia Pacific (11%). 

For the full-year 2026, revenue grew by 9.0% to SG$6.3 billion from SG$5.8 billion in 2025. This was driven by higher cargo volume, more specifically in its Europe and Asia Pacific routes, and also by higher flight frequencies in the Asia Pacific region.

Meanwhile, its operational margins have also improved. Profits rose by 17% from SG$244 million in 2025 to SG$285 million in 2026, raising its net profit margin slightly from 4.2% to 4.5%. In the past five years, it has also recorded a solid financial recovery from the pandemic and registered an average growth of 11% in the past two years.

SATS' share price crashed when the Middle East conflict started in March 2026. And it continued to do so until the last week of May 2026. However, after its earnings result release for 2H 2026, the share price has rebounded by 17.4% from SG$3.28 on 22 May to SG$3.85 on 29 May.  

So, what got investors to change their minds? It’s straightforward. In its presentation, they talked about how it has ‘limited Middle East exposure’ and that ‘SATS’ global network are capturing cargo rerouting opportunities within the Middle East and across alternative corridors’. 

Furthermore, SATS is already reaching its 2029 targets in 2026. EBITDA margins are already at 18.1%, near its target of >20%. PATMI margin of 4.5% is also near its target of >5.0%.

Analysts are targeting an implied upside of about +15.5% for SATS with an average target price of SG$4.45.

SATS is currently trading at a price-to-book ratio of 2.1 times, lower than most of its international airport and port peers.

SATS recent share price rebound could be real. Its earnings results indicate that it’s not that exposed to the conflict in the Middle East, and can even grab re-routing opportunities. 

Investors who are keen on taking advantage of emerging trends could consider SATS in the current volatile climate.