Singapore Airlines Posts First Quarterly Loss Since Pandemic on Fuel Costs, Air India — Update

By Kimberley Kao and Amanda Lee

Singapore Airlines reported its first quarterly net loss since 2022 despite record revenue, dragged down by soaring jet-fuel prices amid Middle East tensions and mounting losses from Air India.

The city-state's flag carrier said Tuesday that it swung to a net loss of 75.8 million Singapore dollars, equivalent to US$58.7 million, for the three months ended June, from net profit of S$186.1 million a year earlier.

Operating profit dropped 74% to S$105.5 million due to a 78.5% jump in net fuel costs amid the war in the Middle East.

A higher share of losses from Air India, in which Singapore Airlines holds a 25.1% stake, also hurt its bottom line.

Singapore Airlines and its low-cost carrier, Scoot, carried a record 10.9 million passengers in the April-June quarter, helping lift group revenue 19% to an all-time high of S$5.71 billion.

Passenger yields increased 12%, and the cargo load factor rose by 1.9 percentage points to 58.8%, the airline said.

Singapore Airlines offered a cautious outlook for the sector as geopolitical developments in the Middle East continued to add uncertainty to the operating environment.

It said that demand for air-travel remains robust, driven by seasonal travel flows. Meanwhile, cargo demand is showing resilience across most key verticals, supported by semiconductor and data center-related movements, SIA added.

The airline industry has been struggling to find its footing, with competition remaining stiff and supply-chain disruptions and geopolitical conflicts threatening stability, driving up energy and fuel costs.

Singapore Airlines said the most immediate impact of the conflict is on jet fuel prices--the company's single-largest expenditure item. Jet fuel prices, which are typically priced on a lagged basis, surged after the war broke out in late February.

SIA's fuel cost before hedging more than doubled in its first quarter on higher fuel prices and consumption.

Analysts said ahead of the results that Singapore Airlines' bottom line could continue to deteriorate as it grapples with elevated fuel prices and Air India losses.

UOB Kay Hian analyst Roy Chen in a recent note said SIA's profitability could rebound in the July-September period, supported by effective cost pass-through and fuel hedging.

The summer travel peak may also help earnings recover this quarter, supported by spot jet-fuel prices declining from earlier peaks, wrote Raymond Yap, an analyst at CGS International. Travelers may still choose Singapore Airlines over Middle East carriers amid the sporadic U.S.-Iran fighting, Yap said.

Write to Kimberley Kao at kimberley.kao@wsj.com and Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

July 28, 2026 07:37 ET (11:37 GMT)