SIA's net profit down by 57% despite record S$20b revenue, cites losses from Air India investment

The Singapore Airlines (SIA) Group posted a net profit of S$1.18 billion over the past year — a 57.4 per cent drop from the year before.

This was even as total revenue hit record levels, and its full-year operating profit rose 39 per cent to S$2.4 billion.

In a May 14 press release, SIA said that it had seen "strong growth in operating profit" due to healthy demand for air travel, higher yields, and lower full-year net fuel cost.

Despite this, its net profits suffered as Air India posted a record loss of over S$3.56 billion.

SIA owns a 25 per cent stake in the Indian airline.

Records set

Multiple records were set over FY2025/2026.

SIA and Scoot carried a record 42.4 million passengers, up 7.7 per cent year-on-year amid robust global demand for air travel.

The group also netted a record revenue of over S$20 billion.

But non-fuel expenditure also increased, in part due to higher costs driven by inflation.

Jet fuel prices have more than doubled, adding "significant cost pressure", SIA said.

It added that "heightened geopolitical tensions, including the conflict in the Middle East, are a major headwind for the airline industry".

Raised airfares

While SIA and Scoot have raised airfares, the adjustments "do not fully offset the rise in the price of jet fuel".

This is the group's single-largest expenditure item, it said.

As jet fuel is typically priced on a "lagged" basis, the higher prices were only partially reflected in this financial year, according to SIA.

"The full impact of the higher jet fuel prices is expected to feed through in FY2026/27."

Headwinds

Despite the Air India losses, SIA reiterated that it is "committed" to its investment.

The Indian group faces headwinds, including the aforementioned jet fuel prices, but continues to make progress in its fleet renewal and operational performance.

The investment "provides the group with a direct stake in one of the world's largest and fastest-growing aviation markets", it said.

It has also recently announced its faster, satellite-based in-flight Wi-Fi, and plans to unveil its next generation of long-haul cabin products at the end of 2026.

Lower bonuses

At a same-day event, SIA said it would reward eligible staff with a 5.7-month profit-sharing bonus.

This is lower than the 7.45 months for FY2025, the 7.94 months for FY2024, and the 6.65 months for FY2023, reported The Business Times.