Singapore Airlines (SIA) has reported its first quarterly net loss since 2022, as higher jet fuel costs triggered by geopolitical tensions in the Middle East and increased losses from its investment in Air India outweighed record operating revenue during the first quarter of its financial year.
For the three months ended 30 June 2026, the airline posted a net loss of S$76 million, compared with a net profit of S$186 million during the same period last year. The result was significantly weaker than market expectations, with analysts having forecast a much smaller loss.
The latest performance highlights the growing financial pressures facing airlines globally, as strong passenger demand and improving yields continue to be offset by rising operating costs, particularly fuel expenses.
Record revenue driven by strong passenger and cargo demand
Despite reporting a quarterly loss, Singapore Airlines achieved record quarterly revenue of S$5.71 billion, representing a 19.3% increase year-on-year.
The growth was driven by sustained demand across both passenger and cargo operations. Passenger yields improved by 12%, while Singapore Airlines and its low-cost subsidiary Scoot together carried a record 10.9 million passengers, an increase of 6.3% compared with the previous year.
The cargo business also delivered a strong performance, with revenue rising 33.5% to S$708 million, supported by stronger freight yields and higher cargo load factors.
Fuel costs surge
The airline’s financial performance was significantly affected by rising fuel prices following the outbreak of conflict in the Middle East earlier this year. Net fuel costs climbed 78.5% to S$2.25 billion, as higher global jet fuel prices more than doubled the airline’s fuel expenditure before hedging during the quarter.
The sharp increase in fuel expenses placed considerable pressure on profitability, resulting in operating profit declining 73.8% to S$106 million, despite record revenues.
The results mirror a broader trend across the global aviation industry, where airlines continue to experience strong travel demand but are increasingly challenged by higher operating costs linked to fuel price volatility.
Air India investment weighs on earnings
Singapore Airlines’ earnings were further impacted by its strategic investment in Air India, in which it holds a 25.1% stake. During the quarter, the airline recognised a S$42 million share of losses from Air India, contributing to the overall net loss.
The results follow comments from Tata Sons, Air India’s majority shareholder, which recently indicated that the airline’s long-term transformation programme could take up to a decade to achieve its objectives.
Outlook remains positive
While acknowledging the challenging operating environment, Singapore Airlines said demand for both passenger travel and air cargo remains resilient.
However, the airline cautioned that a prolonged conflict in the Middle East could continue to disrupt global supply chains, affect international trade and create broader macroeconomic uncertainties, all of which may influence future travel demand and operating costs.
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Conclusion
For airlines and the wider aviation ecosystem, Singapore Airlines’ results underline the growing importance of cost management and operational efficiency in an increasingly volatile market.
Although passenger traffic continues to recover and cargo demand remains healthy, rising fuel costs and geopolitical uncertainty are placing renewed pressure on airline profitability. These conditions are also likely to influence maintenance planning, fleet deployment strategies and digital efficiency initiatives as airlines seek to optimise operations while managing escalating costs.
As the industry navigates a complex economic landscape, carriers are expected to place greater emphasis on fuel efficiency, predictive maintenance and operational resilience to protect margins and sustain long-term growth.
