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SIA reports S$76 million quarterly net loss despite 'record revenue' owing to fuel costs & Air India losses
It is the airline's first quarterly deficit since the pandemic.
July 29, 2026, 02:46 AM
Photo by Md. Shaifuzzaman Ayon/Unsplash
Singapore Airlines (SIA) reported a S$76 million net loss for the three months ended Jun. 30, 2026, even though the total revenue went up by 19.3 per cent to reach a record S$5.71 billion.
It is the national carrier's first quarterly deficit since the pandemic ended, according to Reuters.
For the same quarter the previous year, the airline recorded a net profit of S$186 million.
In a statement on Jul. 28, the Singapore Airlines Group attributed the loss to surging jet fuel prices due to the Middle East conflict, and a higher share of losses from Air India, in which it holds a 25.1 per cent strategic stake.
Strong demand for air travel
The airline was able to achieve its record revenue largely because of "robust demand for air travel", the group explained.
Over the quarter, passenger revenue went up 18.6 per cent to S$4.58 billion.
SIA and Scoot carried a record 10.9 million passengers, 6.3 per cent more than the previous year.
Cargo revenue also grew by 33.5 per cent, or S$178 million, to hit S$708 million.
High fuel spending
However, SIA's expenditure during this period rose at the same time, by 27.9 per cent to S$5.61 billion.
Most of it is accounted for by fuel.
The airline spent S$2.25 billion on fuel, a surge of 78.5 per cent.
The group shared that jet fuel, typically priced on a lagged basis, more than doubled in cost over the quarter due to the Middle East conflict.
"While SIA and Scoot have adjusted air fares and cargo rates to help mitigate this, these measures do not fully offset the impact of significantly higher fuel prices," the group said.
This ultimately led the airline to record a S$299 million, or 73.8 per cent, drop in operating profit, to S$106 million.
Higher share of losses from Air India
Another factor that contributed to the net loss is the S$42 million losses from its share in Air India.
The Indian flag carrier posted a net loss of 222.38 billion rupees (S$3 billion) for the financial year ended March 2026, nearly double the previous year's 108.59 billion rupees (S$1.46 billion), CNA reported.
The airline's turnaround could take up to a decade, longer than previously projected, said the chairman of Tata Sons, which owns Air India, in a Jul. 27 annual report.
It faces several challenges including persistent supply-chain disruptions in key components, the need to overhaul legacy systems, culture, and fleet, and the need to build a larger technical and airline workforce.
SIA Group assured that, against the backdrop of this net loss, it will "continue to seize growth opportunities, leveraging its well-diversified global passenger and cargo network".
