Singapore Airlines (SIA) Group’s net profit for the first half of its 2026/27 financial year fell 43.9 per cent to S$134 million, from S$239 million a year earlier, as higher jet fuel prices weighed on earnings, the group reported on Wednesday (Nov 11).
The drop came even as group revenue reached a record S$11.29 billion for the six months, up 16.8 per cent from S$9.67 billion.
The group linked the fall in profit to high jet fuel prices stemming from the West Asia conflict and to lower operating profit. These were partly offset by a smaller share of losses from associated companies, mainly Air India, and by lower tax expenses.
Fuel bill nearly doubles
According to AsiaOne, fuel costs climbed 90.3 per cent to more than S$4.7 billion in the half-year. Non-fuel expenditure rose 6.8 per cent, which the group put down to capacity expansion and inflationary cost increases.
Passenger flown revenue rose 16.8 per cent to S$9.09 billion, while passenger yield increased 12.1 per cent to 11.1 cents per revenue passenger-kilometre. Cargo revenue grew 30.2 per cent to S$1.39 billion, with cargo yields up 25.4 per cent and the cargo load factor up 2.0 percentage points to 58.5 per cent, Malay Mail reported, citing Bernama. Cargo demand was supported by semiconductor and cloud computing-related flows, AsiaOne said.
SIA and its low-cost arm Scoot carried a record 21.8 million passengers in the period, up 5.0 per cent. Passenger capacity grew 4.9 per cent between April and September 2026.
Stronger second quarter
For the second quarter ended Sept 30, net profit rose to S$210 million from S$52 million on stronger operating profit. Quarterly revenue increased 14.3 per cent to S$5.58 billion, and operating profit rose 16.3 per cent to S$463 million.
The group’s cash and bank balances stood at S$8.12 billion at the end of the period, with total cash and liquidity of S$8.98 billion. It paid S$915 million in ordinary and special dividends during the half. SIA and Scoot each took delivery of two new aircraft in the second quarter, bringing the operating fleet to 224 passenger and freighter aircraft, with 58 more on order.
Middle East routes still suspended
SIA said its Dubai services and Scoot’s Jeddah services remain suspended because of the situation in West Asia, while the launch of SIA flights to Riyadh has been pushed back to March 2027. The group said it will keep monitoring developments and adjust schedules as needed.
Looking ahead, SIA said passenger demand remains healthy, helped by seasonal travel, and that it is well-positioned to handle uncertainty given its diversified network. “The Group will maintain disciplined cost management,” it added.
