Singapore Airlines (SIA) has reported a net loss of S$76 million in the first quarter (1Q) of this financial year, despite enjoying record revenue.
The downturn was attributed to a sharp rise in fuel costs and losses from Air India, the national carrier said in a news release sent to MS News on Tuesday (28 July).
Source: Singapore Airlines on Facebook
SIA’s revenue of S$5.71 billion during 1Q FY2026/27 is an increase of S$924 million, or 19.3%, year-on-year.
The airline benefited from the “robust demand for air travel”, with SIA and Scoot carrying a record 10.9 million passengers.
This translated into an increase of 18.6% in passenger revenue.
Cargo revenue also grew, jumping 33.5% to S$708 million.
However, SIA saw a net loss of S$76 million in the quarter that ended on 30 June — compared with a profit of S$186 million one year ago.
This was due to a S$299 million drop in operating profit and a S$42 million share of losses from Air India, in which SIA has a 25.1% stake.
The last time SIA reported a quarterly loss was during the Covid-19 pandemic, during the fourth quarter of FY2021/22 that ended on 31 March 2022, according to Reuters.
Source: Shawn on Unsplash
The drop in operating profit to S$106 million is a 73.8% slide from a year ago.
It was caused by a “sharp rise in fuel costs” due to the conflict in the Middle East that started on 28 Feb, SIA noted.
Fuel cost before hedging more than doubled in 1Q on elevated fuel prices and higher consumption, pushing up net fuel cost by 78.5% to S$2.25 billion.
This in turn pushed up group expenditure by 27.9%.
SIA’s net results were further weighed down by Air India, which posted a record loss of S$3.56 billion for FY2025/2026, according to SIA’s annual report in May.
The S$42 million in losses incurred by SIA was partially offset by lower tax expense, it said.
Nevertheless, it took on a higher share of losses from Air India, it added.
In its annual report released on Monday (27 July), Air India’s owner Tata Sons said the airline’s rebuilding “must be seen as a five- to ten-year journey”.
Source: Air India on Facebook
Despite the losses, SIA said it is “committed” to Air India’s long-term success, and will work together with Tata Sons to support this “multi-year transformation programme”.
In fact, SIA’s 25.1% stake in Air India is “a key pillar of its multi-hub strategy”, it maintained.
The two airlines have also agreed to deepen their commercial partnership by enhancing network connectivity, expanding codeshare arrangements and collaborating on loyalty programmes.
These collaborations are expected to roll out progressively this year, SIA added.
Have news you must share? Get in touch with us via email at news@mustsharenews.com.
Featured image adapted from Singapore Airlines on Facebook.