Singapore Airlines (SIA) says the financial impact of higher fuel prices will be reflected in the current fiscal year ending March 2027, and that adjusting fares alone will not fully offset rising costs attributed to the conflict in the Middle East and the blockade of the Strait of Hormuz.
Despite record revenue and record passenger numbers (942.4 million passengers in FY2025/26), SIA is bracing for tougher times ahead, “depending on the duration and how the situation in the Middle East develops”.
Net profit fell 57.4% to S$1.2 billion (US$937 million) over the period, primarily due to the absence of the $1.1 billion non-cash accounting gain recognised in November 2024 when SIA completed the Air India-Vistara merger.
Despite current challenges, SIA says shifts in demand patterns “may present opportunities” for the airline group.
“Our well-diversified global passenger and cargo network, anchored by the strength of Singapore as a strategic hub, and the dual-brand portfolio of SIA and Scoot, provide the flexibility to adjust schedules and capacity where necessary, and pursue opportunities as they arise,” the airline said.
Singapore Airlines last week announced new and increased services to Germany, Italy, Spain and the UK, citing “strong demand for travel to Europe”.
In sharing its full year operating results, SIA said it is committed to its 25.1% investment in the Air India Group, “which is a core component of its long-term multi-hub strategy”.
The airline said the investment provides the group with “a direct stake in one of the world’s largest and fastest-growing aviation markets, complementing its Singapore hub and strengthening its long-term growth”.
SIA said it recognises that Air India faces headwinds, but continues to make progress in its fleet renewal and aircraft retrofit programme.