Singapore Airlines Posts S$76 Million Quarterly Loss Despite Record S$5.71 Billion Revenue

Singapore Airlines (SIA) has reported a quarterly net loss of S$76 million, marking its first loss since the aviation industry recovered from the Covid-19 pandemic, despite achieving its highest-ever quarterly revenue.

For the three months ending Jun. 30, 2026, the national carrier generated a record S$5.71 billion in revenue, representing a 19.3 per cent increase compared to the same period last year. However, soaring operating costs, particularly fuel expenses, and losses linked to its investment in Air India dragged the airline into the red.

The latest result is a significant turnaround from the S$186 million net profit recorded during the corresponding quarter in 2025, highlighting the financial pressure airlines continue to face amid global uncertainty.

Fuel Prices Erase Gains From Strong Passenger Demand

According to the Singapore Airlines Group, demand for both passenger and cargo services remained exceptionally strong throughout the quarter.

Passenger revenue climbed 18.6 per cent to S$4.58 billion, while SIA and its budget carrier Scoot transported a record 10.9 million passengers, an increase of 6.3 per cent year-on-year.

Cargo operations also performed well, with revenue surging 33.5 per cent to S$708 million, reflecting continued demand for air freight services.

Despite the encouraging revenue figures, operating expenses rose even faster. Total expenditure increased 27.9 per cent to S$5.61 billion, with fuel accounting for the largest jump in costs.

Jet Fuel Costs Surge Amid Middle East Conflict

Fuel expenditure reached S$2.25 billion during the quarter, representing a sharp 78.5 per cent increase compared to a year earlier.

The airline explained that jet fuel prices more than doubled over the reporting period due to ongoing tensions in the Middle East. Although SIA and Scoot adjusted ticket prices and cargo rates to cushion the impact, the higher fares were insufficient to fully offset the dramatic rise in fuel costs.

As a result, the group’s operating profit plunged 73.8 per cent, falling from S$405 million a year ago to just S$106 million.

Air India Investment Also Weighed On Results

Another major factor behind the quarterly loss was Singapore Airlines’ share of losses from Air India, where it owns a 25.1 per cent strategic stake.

During the quarter, SIA recognised S$42 million in losses from the Indian carrier.

Air India has been undergoing a lengthy transformation since coming under Tata Group ownership but continues to face significant operational challenges. These include supply chain disruptions affecting aircraft parts, ageing systems requiring modernisation, fleet renewal programmes, workforce expansion and broader organisational restructuring.

Industry observers have suggested that Air India’s recovery may take considerably longer than initially anticipated, adding continued financial pressure on investors.

Outlook Remains Positive Despite Quarterly Deficit

Although the airline posted a quarterly loss, Singapore Airlines remains optimistic about its long-term prospects.

The group said it intends to continue capitalising on strong global demand for passenger travel and cargo services by leveraging its extensive international network and diversified business model.

While rising fuel prices and external geopolitical events remain key risks, the airline believes its premium brand, strong balance sheet and expanding global connectivity will position it well for future growth once cost pressures begin to ease.