SIA flies record 21.8 million passengers, but pricey fuel eats into earnings

SIA posts record S$11.3 billion half-year revenue, but profits fall 43 per cent. — AsiaOne pic

First Published: Thursday, 12 Nov 2026 9:17 AM MYT

SINGAPORE, Nov 12 — National carrier Singapore Airlines (SIA) posted a net profit of S$134 million (RM425 million) in the first half of 2026 amid a record S$11.3 billion (RM35.8 billion) revenue, the group reported on Wednesday (November 11).

But despite total revenue growing by 16.8 per cent to better the S$9.67 billion (RM30.7 billion) revenue posted in the same period last year, net profit fell by 43.9 per cent — from S$239 million (RM758 million) in the first half of its last financial year — to S$134 million (RM425 million).

This was mainly due to high fuel costs, which grew 90.3 per cent to over S$4.7 billion (RM14.9 billion), weighing down revenue from record passenger carriage and robust cargo yield, SIA pointed out.

In the first half of its 2026/2027 financial year, SIA and Scoot saw passenger flown revenue reach nearly S$9.1 billion (RM28.8 billion) as they carried a record 21.8 million passengers.

This, as passenger yields grew 12.1 per cent to 11.1 cents per revenue passenger-kilometre, while cargo revenue grew 30.2 per cent to over S$1.39 billion (RM4.4 billion).

Meanwhile, non-fuel expenditure rose by 6.8 per cent to S$429 million (RM1.36 billion), driven by overall capacity expansion and inflationary cost increases, the group said.

Coupled with the weaker first quarter performance, and partially offset by lower share of losses from associated companies — mainly Air India — its first half net profit consequently fell by S$105 million (RM333 million) as compared to the same period last year, to S$134 million (RM425 million).

Specific to the second quarter of its current financial year, SIA’s total revenue grew by 14.3 per cent to S$5.58 billion (RM17.7 billion), while its operating profit grew by 16.3 per cent to S$463 million (RM1.47 billion).

Strong balance sheet 

Despite this, SIA pointed out that it still holds one of the strongest balance sheets in the airline industry.

Its cash and bank balances grew by S$191 million (RM605 million) to S$8.12 billion (RM25.7 billion), largely due to the S$2.5 billion (RM7.9 billion) net cash from operations, and S$911 million (RM2.89 billion) in proceeds from the maturity of fixed deposits placed for tenors longer than 12 months.

These were partially offset by S$1.11 billion (RM3.5 billion) worth of capital expenditure, S$994 million (RM3.15 billion) in repayments of fixed rate bond and borrowings, and S$915 million (RM2.9 billion) in payment of ordinary and special dividends.

The group also declared that its total cash and liquidity stood at S$8.98 billion (RM28.5 billion).

This consists of the S$8.12 billion (RM25.7 billion) in cash and bank balances and S$855 million (RM2.71 billion) in fixed deposits placed for tenors longer than 12 months, classified as other short-term assets.

It also has access to S$3.23 billion (RM10.2 billion) in committed lines of credit that remain undrawn.

In the second quarter, SIA and its low-cost budget carrier Scoot, each took delivery of two new aircraft, bringing its operating fleet to 224 passenger and freighter aircraft.

The group has another 58 on order.

Outlook 

And while the airline industry continues to operate in an uncertain environment, with volatile geopolitical developments adding complexity across operations and supply chains, the group said it is in a strong position to navigate these, pointing to its diversified global network and broad mix of traffic flows.

It also noted that passenger demand remains healthy, supported by seasonal travel flows, while cargo demand has been firm owing to semiconductor and cloud computing-related flows.

“The Group will maintain disciplined cost management to reinforce its long-term competitive position,” SIA added. — AsiaOne