Singapore Airlines reported its first quarterly net loss since 2022, posting a S$76 million (US$58.9 million) loss for the three months ended June 30, 2026, despite record revenue of S$5.71 billion. The loss was primarily driven by increased fuel costs linked to the Middle East conflict and a larger share of losses from its associate, Air India.
Record Revenue Offset by Rising Costs
Despite achieving record quarterly revenue of S$5.71 billion—a 19.3 per cent increase year-on-year—Singapore Airlines (SIA) experienced a net loss of S$76 million (approximately US$58.79 million) in the first quarter of 2026, according to a report by Reuters. This marks the airline’s first quarterly loss since the three months ending March 31, 2022. The revenue increase was fueled by strong passenger demand, with passenger revenue up 18.6 per cent to S$4.58 billion. SIA and Scoot collectively carried a record 10.9 million passengers, a 6.3 per cent increase from the previous year.
However, the gains were overshadowed by a substantial increase in expenditure, rising by 27.9 per cent to S$5.6 billion. A key factor was a 78.5 per cent surge in net fuel costs to S$2.25 billion, attributed to the impact of the Middle East conflict on jet fuel prices, as CNA reported. This rise in fuel costs, coupled with a S$42 million increase in SIA’s share of losses from Air India, significantly impacted the airline’s profitability.
Air India’s Performance Weighs on Results
SIA holds a 25.1 per cent stake in Air India, and the Indian carrier’s ongoing financial challenges contributed to the group’s overall loss. According to The Business Times, Air India reported a record US$2 billion loss for the last financial year. While Tata Sons, Air India’s majority owner, remains committed to the airline’s turnaround—potentially taking up to a decade—the losses continue to affect SIA’s financial performance. SIA and Tata Sons are working on Air India’s transformation, with The Straits Times noting tangible progress
in fleet renewal and service enhancements.
Geopolitical Uncertainty and Future Outlook
SIA acknowledged that geopolitical developments, particularly the ongoing conflict in the Middle East, continue to pose a significant challenge. The airline also warned that a prolonged conflict could further disrupt supply chains, global trade, and macroeconomic conditions.
Despite these challenges, SIA is continuing to invest in enhancing its customer experience. New initiatives include upgrades to lounges, in-flight entertainment systems, and the planned introduction of Starlink satellite internet service from 2027, as detailed by The Straits Times. Moreover, the airline is deepening partnerships with Air India, Malaysia Airlines, and Air China to expand network connectivity and enhance commercial opportunities.
Balancing Capacity and Demand
While SIA has seen strong demand for air travel, the group’s capacity expansion of 5.9 per cent outpaced traffic growth of 5.3 per cent, resulting in a slight decrease in passenger load factor to 87.1 per cent, according to The Business Times. This suggests a need to carefully balance capacity and demand to maintain load factors and optimize revenue. SIA believes its dual-brand strategy—with SIA and Scoot—provides flexibility to adjust capacity as needed.
Looking ahead, the airline’s ability to navigate the volatile fuel market and manage its stake in Air India will be crucial. The outcome of the Middle East conflict and its impact on global economic conditions will also play a significant role in SIA’s future performance. The current situation highlights the vulnerability of airlines to external shocks, even amidst strong underlying demand for air travel.
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