Singapore Airlines Group has reported a net loss of S$76 million for the first quarter of FY2026/27, reversing a S$186 million profit recorded during the same period a year earlier.
The loss came despite record quarterly revenue of S$5.71 billion, up 19.3% year on year, supported by strong passenger demand, higher fares and improved cargo performance.
Operating profit fell 73.8% to S$106 million as total expenditure increased faster than revenue, driven primarily by a sharp rise in fuel costs.
Fuel Costs Rise by Nearly 79%
Net fuel costs climbed by S$991 million, or 78.5%, to S$2.25 billion during the three months ended June 30, 2026.
Fuel expenditure before hedging more than doubled to S$2.63 billion as jet fuel prices surged following the outbreak of conflict in the Middle East in February.
A S$376 million fuel hedging gain partly offset the increase, compared with a S$60 million hedging loss in the same quarter last year.
Non-fuel expenditure rose 7.4% due to capacity growth and inflationary pressure.
The Group also recorded a higher share of losses from Air India, which contributed to the year-on-year decline in net results.
Passenger and Cargo Revenue Increase
Singapore Airlines and Scoot carried a record 10.9 million passengers during the quarter, an increase of 6.3%.
Passenger revenue rose 18.6% to S$4.58 billion, while passenger yields increased 12% to 11.2 Singapore cents per revenue passenger-kilometre.
Group passenger load factor slipped by 0.5 percentage points to 87.1% as capacity growth of 5.9% slightly exceeded traffic growth of 5.3%.
Cargo revenue increased 33.5% to S$708 million, supported by a 28.1% rise in cargo yields and stronger load factors.
Network and Fleet Continue to Expand
The Group ended the quarter with an operating fleet of 220 passenger and freighter aircraft and 62 additional aircraft on order.
Scoot launched new services to Belitung and Pontianak, while Singapore Airlines began daily flights to Hangzhou.
The Group’s passenger network covered 137 destinations in 36 countries and territories as of June 30.
Singapore Airlines is also increasing services to London Gatwick, Manchester, Amsterdam, Milan and Munich, while preparing to launch flights to Madrid via Barcelona in October 2026 and daily services to Western Sydney International Airport in November.
However, regional instability has affected parts of the network. Scoot suspended Jeddah services in July, Singapore Airlines flights to Dubai remain suspended, and the planned launch of Riyadh services has been delayed until December.
Strong Liquidity Supports Investment Plans
Singapore Airlines Group ended the quarter with S$9.10 billion in cash and bank balances, up S$1.17 billion from the end of March.
Including longer-term fixed deposits, total cash reserves stood at S$10.48 billion. The Group also had access to S$3.24 billion in undrawn committed credit facilities.
Total debt increased slightly to S$10.74 billion following the issuance of a CNY1.5 billion five-year bond.
Despite the quarterly loss, the Group said its balance sheet would allow it to continue investing in aircraft, lounges, digital systems and passenger products.
Singapore Airlines plans to unveil a new long-haul travel experience later in 2026, including next-generation cabin products, refreshed inflight entertainment, updated dining and new amenity kits. Starlink connectivity is scheduled to begin rolling out from 2027.
