SIA Q1 net profit falls 58.8% to S$186 million on associates’ losses, lower interest income

Net profit for Singapore Airlines (SIA) declined 58.8 per cent to S$186 million for Q1 FY2026 ending Jun 30, from S$452 million in the corresponding quarter a year ago. This was due to lower interest income and share of losses of associates, the national carrier said in a bourse filing on Monday (Jul 28).

However, revenue for the quarter rose 1.5 per cent to S$4.8 billion from S$4.7 billion in Q1 FY2025 on strong demand. SIA and Scoot carried a record 10.3 million passengers, up 6.9 per cent.

The traffic growth of 4.1 per cent was higher than capacity expansion of 3.3 per cent, resulting in group passenger load factors rising 0.7 percentage point to 87.6 per cent. But passenger yields slipped 2.9 per cent to S$0.10 per revenue passenger-kilometre as peers continued to add capacity.

Cargo flown revenue fell 1.9 per cent or S$10 million as yields deteriorated 4.4 per cent. Cargo load growth of 2.8 per cent fell behind capacity expansion of 4.2 per cent, leading to cargo load factor falling 0.8 percentage point to 56.9 per cent.

Expenditure rose 3.2 per cent to S$4.4 billion due to higher non-fuel expenditure, which rose 8.5 per cent to S$3.1 billion. This was mainly driven by a 3.7 per cent rise in overall capacity, and inflationary pressures.

Net fuel cost declined 7.9 per cent to S$1.3 billion, mainly due to the fall in fuel prices, but was offset by the higher volume uplifted of S$70 million and a fuel hedging loss of S$109 million (against a gain last year).

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As a result, net operating profit also fell 13.8 per cent to S$405 million in Q1 FY2026, from S$470 million in Q1 FY2025.

Healthy demand, but tariff impact continues to weigh

SIA will ramp up capacity to destinations in Malaysia, Philippines, Sri Lanka and Thailand in the wake of Jetstar Asia’s closure.

Looking ahead, demand for air travel remains healthy for Q2 FY2026 due to the traditional summer peak, but SIA is facing challenges from geopolitics to macroeconomic fluctuations and changing market dynamics.

The ongoing tariffs are also expected to continue impacting the airline’s cargo business, though SIA says its diversified network and verticals reduce its exposure to specific regions or market segments.

“The group will remain vigilant in this dynamic operating environment, while identifying and capitalising on emerging areas of growth,” said the carrier.

Shares of SIA closed up 0.4 per cent or S$0.03 at S$7.60 on Monday.