Singapore Airlines (SIA) Group has reported a sharp decline in annual net profit despite achieving record-breaking revenue and strong passenger demand in the latest financial year. For FY2025/2026, the airline group posted a net profit of S$1.18 billion, marking a 57.4 per cent drop compared with the previous year, even as total revenue surpassed S$20 billion.
The results highlight a mixed financial performance for Singapore’s flagship carrier. While operating profit rose 39 per cent to S$2.4 billion—supported by robust air travel demand, improved passenger yields, and lower net fuel costs—the bottom line was significantly affected by losses linked to its investment in Air India.
SIA holds a 25 per cent stake in Air India, which reportedly recorded losses exceeding S$3.56 billion during the financial period. This investment impact weighed heavily on the group’s overall profitability, offsetting gains from its core airline operations, including SIA and Scoot.
RECORD PASSENGER NUMBERS AND REVENUE GROWTH
Despite the profit decline, SIA Group achieved several operational milestones. The airline and its low-cost subsidiary Scoot carried a record 42.4 million passengers during the year, representing a 7.7 per cent increase compared with the previous period. This surge reflects continued recovery and strong global demand for air travel, particularly across Asia-Pacific routes.
Revenue also reached an all-time high, crossing the S$20 billion mark for the first time in the group’s history. However, rising costs continued to pressure margins. Non-fuel expenditure increased due to inflationary pressures, while jet fuel prices—one of the airline’s largest cost components—more than doubled during the period.
The airline noted that fuel costs are typically recognised on a lagged basis, meaning the full impact of higher prices will only be reflected in the next financial year. This suggests continued cost pressure heading into FY2026/2027, despite fare adjustments implemented across its network.
COST PRESSURES AND INDUSTRY HEADWINDS
SIA acknowledged that while airfares were raised to help offset rising operational costs, they were insufficient to fully compensate for the surge in jet fuel prices. The group also pointed to broader geopolitical tensions, including conflicts in the Middle East, as ongoing risks for the global aviation sector.
These external pressures, combined with inflation-driven expenses, have created a challenging environment for airlines worldwide. Nonetheless, SIA emphasised that it remains committed to its strategic investment in Air India, citing long-term growth potential in India’s rapidly expanding aviation market.
The airline also highlighted ongoing efforts to strengthen its service offerings, including the rollout of faster satellite-based in-flight Wi-Fi and plans for next-generation long-haul cabin products scheduled for launch by the end of 2026.
STAFF BONUSES AND OUTLOOK FOR FY2026/27
Alongside the financial results, SIA announced a profit-sharing bonus of 5.7 months for eligible employees. While still substantial by industry standards, this figure is lower than previous years, reflecting the decline in net profitability.
For comparison, staff received 7.45 months in FY2025, 7.94 months in FY2024, and 6.65 months in FY2023. The reduction signals a moderation in bonus payouts despite continued operational strength.
Looking ahead, the airline expects fuel costs and global uncertainties to remain key challenges. However, with strong passenger demand and record revenue performance, SIA continues to position itself as a major player in the global aviation industry, balancing short-term cost pressures against long-term growth ambitions.