Singapore Airlines first-half profit plunges 44pc to S$134m on higher fuel costs

Singapore Airlines (SIA) reported a staggering 44% plunge in profit for the first half of its financial year 2026/27, with net profit plummeting to S$134 million, down from S$239 million in the previous year. The decline was largely due to soaring jet fuel prices, a direct result of the conflict in West Asia. Despite this, revenue increased 16.8% to a record S$11.29 billion, driven by robust growth in passenger and cargo yields.

For the second quarter ending September 30, 2026, the group's net profit jumped to S$210 million, up from S$52 million in the same period last year. The group attributed this to record passenger carriage and strong performance in passenger and cargo yields. Passenger flown revenue grew by 16.8% to S$9.09 billion, with a total of 21.8 million passengers carried, a 5.0% increase year-on-year.

Cargo revenue also rose significantly by 30.2% to S$1,394 million, thanks to a 25.4% improvement in yields and a 2.0 percentage point increase in the cargo load factor to 58.5%. Despite the headwinds from the West Asia conflict, the group managed to grow passenger capacity by 4.9% in the period from April to September 2026. The group stated it is well-positioned to navigate uncertainties in the airline industry and volatile geopolitical developments, including the ongoing West Asia conflict.

However, Scoot's services to Jeddah, Saudi Arabia, and SIA's services to Dubai, UAE, remain suspended, while the launch of SIA's services to Riyadh, Saudi Arabia, has been deferred to March 2027. The group will continue to monitor developments closely and adjust schedules as necessary.