SIA net profit slumps 57% as Air India losses offset record operating gain

Operating profit rose 39% to $2.38b on stronger travel demand and yields.

Singapore Airlines (SIA) Group reported a 57.4% year-on-year (YoY) decline in net profit to $1.18b for the financial year ended 31 March, mainly due to the absence of a one-off accounting gain in the prior year and its share of losses from Air India, according to its results.

Operating profit rose 39% to $2.38b, supported by higher passenger demand, stronger yields and lower net fuel costs. Revenue increased 5% to $20.52b, whilst expenditure rose 1.8% to $18.15b.

Net fuel cost fell 6.7% to $5.03b, partly offsetting higher non-fuel costs, which rose 5.4% due to capacity growth and inflation-related expenses, according to the airline.

The group carried a record 42.4 million passengers during the year, up 7.7%. Passenger load factor rose 1.1 percentage points to 87.7%, whilst yield increased 1% to 10.4 cents per revenue passenger-kilometre.

Cargo revenue fell 2.1% to $2.17b as lower yields offset higher volumes.

For the second half, operating profit rose 72% to $1.57b, whilst net profit fell 53.6% to $945m.

As of 31 March 2026, equity stood at $17.3b, up $1.6b year on year. Total debt fell $2.3b, lowering the debt-to-equity ratio to 0.62 times from 0.82 times. Cash and bank balances were $7.9b, down from $8.2b. The group had $3.3b in undrawn credit lines.

SIA operated 218 aircraft as at end-March 2026 and took delivery of three aircraft during the year. It expanded and adjusted its network across Asia and Europe, including changes to services to London, Manchester, Madrid and Sydney.

The airline suspended services to Dubai and Jeddah from February 2026 due to geopolitical conditions in the Middle East and deferred the launch of Riyadh services to September 2026.

SIA extended its suspension of Singapore–Dubai flights until 2 August. The route was previously suspended until 31 May.

SIA said higher jet fuel prices linked to Middle East tensions were only partly reflected in FY2025/26 due to hedging and timing effects, with full impact expected in FY2026/27.

The group proposed a total dividend of 37 cents per share for FY2025/26, subject to shareholder approval.