Singapore Airlines (SIA) Group reported a significant decline in profitability in the first half of the 2026/27 financial year, despite an increase in revenue, as rising fuel costs weighed heavily on its financial performance. The Group’s net profit fell by 43.9% year-on-year, declining from $239 million to $134 million. Operating profit also dropped by 29.1% to $569 million.
The Group’s total revenue rose by 16.8% to a record $11.3 billion, driven by strong demand for passenger and cargo services. However, total expenses increased by 20.9% to $10.7 billion. Rising jet fuel prices amid ongoing conflicts in the Middle East placed significant pressure on the airline’s operating costs. Average jet fuel prices surged by 86.7% to $171 per barrel, while net fuel expenses, after hedging, increased by 56% to approximately $4 billion.
Singapore Airlines and its low-cost subsidiary Scoot carried a total of 21.8 million passengers during the period, representing a 5% year-on-year increase. Despite this growth, the Group’s passenger load factor declined by 0.9 percentage points to 86.8%. Meanwhile, geopolitical developments in the Middle East have led to the suspension of Singapore Airlines’ flights to Dubai and Scoot’s services to Jeddah. The launch of Singapore Airlines’ flights to Riyadh has also been postponed until March 2027.
