Singapore Airlines Results: Half-Year Profit Falls 43.9%

Singapore Airlines has reported a 43.9% fall in half-year net profit attributable to shareholders to S$133.9 million (about US$104 million), as soaring jet fuel prices ate into record revenue. The Singapore Airlines results for the six months to 30 September showed a sharp second-quarter rebound, helped by higher fares, strong cargo demand and smaller losses at Air India.

The group, which includes low-cost arm Scoot, released its numbers on Wednesday, 11 November. Profit attributable to owners of the company was down from S$238.5 million a year earlier.

Singapore Airlines results: record revenue, thinner profit

Group revenue rose 16.8% to a record S$11.3 billion (about US$8.82 billion), up from S$9.67 billion. Expenditure grew faster, rising 20.9% to S$10.73 billion.

Operating profit for the half fell 29.1% to S$569.2 million from S$802.9 million. The second quarter told a better story, with operating profit up 16.3% to S$463.7 million on revenue of S$5.58 billion, a 14.3% increase. Net profit for the July to September quarter rose to S$209.7 million from S$52.4 million a year earlier.

SIA and Scoot carried a record 21.8 million passengers in the half, up 5%. Passenger flown revenue was nearly S$9.1 billion, and passenger yield rose 12.1% to 11.1 cents per revenue passenger-kilometre. Cargo revenue climbed 30.2% to more than S$1.39 billion.

By segment, Singapore Airlines’ full-service operation earned an operating profit of about S$574 million, down 31.7%, while Scoot narrowed its operating loss to about S$24 million from S$39 million.

Jet fuel costs weigh on SIA profit

Fuel was the main drag. The average jet fuel price rose 86.7% year on year to US$171 a barrel, and fuel costs before hedging climbed 90.3% to about S$4.71 billion (about US$3.7 billion). Hedging gains of S$806 million cushioned the blow, leaving net fuel costs 56% higher at S$3.97 billion.

Air India provided some relief. SIA’s share of losses from the Indian carrier, in which it holds a 25.1% stake, narrowed to S$361.7 million from S$429.5 million.

The balance sheet remains solid. Cash and bank balances stood at S$8.12 billion, and total liquidity, including fixed deposits longer than 12 months, reached S$8.98 billion. The group also has S$3.23 billion in undrawn committed credit lines.

Net cash from operations was S$2.5 billion. Capital spending was S$1.11 billion, and debt repayments totalled S$994 million.

SIA’s operating fleet stands at 224 passenger and freighter aircraft, with 58 more on order. SIA and Scoot each took delivery of two new aircraft in the second quarter.

Dividend and outlook

The board declared an interim ordinary dividend of 2 Singapore cents per share and a special dividend of 5 cents, for a total of 7 cents, against 8 cents a year earlier. Payment is due on 11 December 2026 to shareholders on record as of 26 November.

On the outlook, the group said passenger demand remained healthy and cargo demand firm. It warned that jet fuel prices remain elevated relative to pre-conflict levels, and that fuel prices and geopolitical uncertainty linked to the conflict in the Middle East continue to pressure costs.

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

The numbers matter well beyond Changi. SIA is one of Asia’s bellwether carriers, and its results offer a read on how airlines across the region are coping with expensive fuel. Strong demand and pricing power have protected revenue, but margins remain exposed to the oil market and to geopolitical risk.

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For investors, the Singapore Airlines results carry two positives, the second-quarter recovery and the special dividend. SIA shares closed at S$7.17 ahead of the announcement. The next test will be the peak year-end travel season and the direction of fuel prices. Investors will also watch Air India’s progress, since its losses have a direct bearing on SIA’s bottom line.

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