KUALA LUMPUR: Singapore Airlines (SIA) Group’s net profit fell 43.9 per cent to RM425.6 million (S$134 million) in the first half of its financial year 2026/27 ended Sept 30, 2026, despite revenue climbing 16.8 per cent to a record RM35.9 billion (S$11.30 billion).
SIA Group said passenger demand remained healthy but elevated jet fuel prices due to the ongoing conflict in the Middle East continued to put pressure on operating costs, despite adjustments to airfares and cargo rates.
“While the group has adjusted air fares and cargo rates, these measures do not fully offset the impact of sustained high fuel prices,” it said in a statement on Wednesday.
The group, which comprises full-service carrier Singapore Airlines and its low-cost subsidiary Scoot, recorded a 20.9 per cent increase in total expenditure to RM34 billion (S$10.73 billion) from RM28.2 billion (S$8.87 billion) a year earlier.
Net fuel cost rose 56 per cent to RM12.6 billion (S$3.97 billion) from RM8.1 billion (S$2.55 billion), while fuel cost before hedging surged 90.3 per cent to RM14.9 billion (S$4.71 billion).
The group said average jet fuel prices reached US$171 per barrel during the six-month period, an increase of 86.7 per cent year-on-year amid the Middle East conflict.
Fuel hedging gains of S$731 million, compared with a S$75 million loss a year earlier, partially offset the increase in fuel costs.
Non-fuel expenditure rose 6.8 per cent to S$6.75 billion, mainly due to capacity expansion and inflationary cost increases.
The group’s first-half operating profit fell 29.1 per cent to S$569 million from S$803 million.
It said the decline in operating profit was partially offset by a S$68 million reduction in its share of losses from associated companies, mainly Air India, and S$70 million in lower tax expenses.
For the second quarter ended Sept 30, 2026, SIA Group recorded a net profit of S$210 million, compared with S$52 million in the same period last year.
Operating profit rose 16.3 per cent to S$463 million from S$398 million, while revenue increased 14.3 per cent to a record S$5.58 billion from S$4.88 billion.
Its second quarter 2026 total revenue rose 14.3 per cent to a record S$5.58 billion from S$4.88 billion in the same period last year.
Passenger revenue in the second quarter this year grew 15 per cent to S$4.51 billion, driven by a 12.2 per cent increase in passenger yields and 2.3 per cent growth in passenger traffic
Cargo revenue increased 26.9 per cent to S$686 million, supported by a 22.3 per cent improvement in yields and 3.9 per cent higher cargo loads
Total expenditure rose 14.1 per cent to S$5.12 billion, including net fuel costs of S$1.72 billion, which increased 33.9 per cent year-on-year.
The group said the stronger second-quarter net profit was also due to a S$110 million reduction in its share of losses from associated companies, mainly Air India.
For the first half, passenger revenue grew 16.8 per cent to S$9.10 billion from S$7.79 billion a year earlier.
Singapore Airlines and Scoot carried a combined 21.82 million passengers, a record for the six-month period and an increase of five per cent year-on-year.
Singapore Airlines carried 14.09 million passengers, up three per cent from 13.67 million, while Scoot recorded an 8.9 per cent increase to 7.73 million passengers from 7.10 million.
Passenger load factor was recorded at almost 87 per cent.
Cargo revenue rose 30.2 per cent to S$1.39 billion from S$1.07 billion a year earlier, driven by higher cargo yields and loads.
Cargo and mail carried increased 5.7 per cent to 611.2 million kilogrammes from 578.4 million kilogrammes.
As at Sept 30, 2026, SIA Group’s shareholders’ equity stood at S$16.45 billion, down S$815 million from March 31, 2026.
Total debt declined S$637 million to S$10.01 billion, mainly due to the maturity of a US$500 million fixed-rate bond and debt repayments.
SIA Group said its cash and bank balances increased S$191 million to S$8.12 billion, supported by S$2.50 billion in net cash generated from operations.
The group also had access to S$3.23 billion in committed credit facilities, all of which remained undrawn.
The board declared an interim ordinary dividend of two Singapore cents per share and an interim special dividend of five Singapore cents per share, bringing the total first-half dividend to seven Singapore cents per share.
Both dividends will be paid on Dec 11, 2026.
As at Sept 30, 2026, Singapore Airlines operated 152 passenger aircraft and seven freighters, while Scoot operated 65 passenger aircraft.
The group’s combined operating fleet comprised 224 aircraft with an average age of seven years and 11 months.
During the second quarter, Singapore Airlines took delivery of two Boeing B737-8 aircraft, while Scoot received two Airbus A321neo aircraft.
The group had 58 aircraft on order, comprising 24 Airbus and 34 Boeing aircraft.
“For the period April to September 2026, despite the headwinds from the Middle East conflict on the global airline industry, the Group’s passenger capacity grew 4.9 per cent,” it said.
Its passenger network covered 136 destinations across 35 countries and territories as at Sept 30, with Singapore Airlines serving 78 destinations and Scoot serving 84.
The group’s cargo network covers 139 destinations across 36 countries and territories.
During the first half of 2026, Singapore Airlines launched daily flights to Hangzhou, China, and increased frequencies to Amsterdam, London Gatwick and Manchester.
Scoot also introduced services to Belitung and Pontianak in Indonesia.
For the Northern Winter 2026 operating season, SIA Group said Singapore Airlines will increase frequencies to selected destinations, including Adelaide, Auckland, Milan, Munich, Ho Chi Minh City and Da Nang.
The carrier will also introduce services to Madrid via Barcelona and Western Sydney International Airport.
“Due to the geopolitical situation in the Middle East, Scoot’s services to Jeddah (Saudi Arabia) and SIA’s services to Dubai (the United Arab Emirates) remain suspended.
“The launch of SIA’s services to Riyadh (Saudi Arabia) has been deferred to March 2027,” SIA Group said.
SIA Group said its 25.1 per cent strategic stake in Air India Group remained a key component of its multi-hub strategy.
“The direct participation in one of the world’s largest and fastest-growing aviation markets complements SIA Group’s main hub in Singapore and broaden access to new traffic flows,” it said.
The group also said Singapore Airlines and its partner Tata Sons continued to support Air India’s multi-year transformation,
In Malaysia, Singapore Airlines and Malaysia Airlines introduced a joint fare product in June 2026, building on their existing codeshare partnership and providing passengers with more travel options across their combined networks.
The group said the aviation industry continued to face an uncertain operating environment, with volatile geopolitical developments, particularly the Middle East conflict, affecting operations and supply chains.
Jet fuel prices remained elevated compared with pre-conflict levels, adding pressure to airline operating costs.
The group warned that a prolonged conflict could contribute to further inflationary pressures and affect demand for passenger travel and air freight.