Singapore Airlines (SIA) has posted a lower net profit of $186 million for the 1QFY2026 ended June 30, down 58.8% y-o-y from the $452 million reported in the same period a year ago.
Earnings per share came in lower at 6.3 cents for 1QFY2026.
Meanwhile, group revenue increased marginally to $4.79 billion in the quarter, up 1.5% y-o-y.
SIA and Scoot carried a record 10.3 million passengers, up 6.9% y-o-y in 1QFY2026, and the group passenger load factor grew 0.7 percentage points (ppts). Passenger yields slipped 2.9% to 10 cents per revenue passenger-kilometre amid heightened competition as more airlines continue to add capacity.
Cargo flown revenue fell by 1.9% for 1QFY2026 as yields deteriorated 4.4%, and cargo load factor (CLF) declined by 0.8 ppts to 56.9% as cargo load growth of 2.8% lagged capacity expansion of 4.2%.
In the 1QFY2026, group expenditure rose 3.2% y-o-y to $4.39 billion in the quarter mainly due to higher non-fuel expenditure, which was driven by the 3.7% rise in overall capacity and inflationary pressures on key cost elements.
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As such, SIA’s operating profit was $405 million for the quarter, 13.8% y-o-y lower.
The decline in net profit for the reporting period is largely attributable to a lower interest income, about $61 million less, on the back of lower cash balances and interest rate cuts, and the group recording a share of losses of associated companies compared to a share of profits for the same quarter last year.
This is notably from Air India’s financial results, which were not part of SIA’s results for the same quarter last year. The group started equity accounting for Air India’s financial performance from December 2024 following the full integration of Vistara into Air India.
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As at June 30, the group’s shareholder equity stood at $15.8 billion, $10.1 billion higher than the previous quarter. Total debt balances fell to $11.5 billion with debt to equity ratio reducing to 0.73.
During the quarter, $235 million of the convertible bonds issued in December 2020 were converted at the conversion price of $4.8945 into 48 million ordinary shares. As at June 30, $615 million of the convertible bonds remain outstanding.
Cash and bank balances declined to $7.8 billion due to repayment of borrowings and capital expenditure disbursements, as at end June.
As at June 30, the group’s operating fleet had 204 passenger and freighter aircraft with an average age of seven years and nine months. SIA operated 144 passenger aircraft and seven freighters, while Scoot operated 53 passenger aircraft.
During the quarter, Scoot added one Airbus A321neo, one Boeing 787-8, and one Embraer E190-E2 aircraft to its fleet. The group has 72 aircraft on order at the end of this quarter.
With the closure of Jetstar Asia on July 31, SIA says that it will ramp up capacity to various Asian destinations in Malaysia, the Philippines, Sri Lanka, and Thailand. This includes Scoot commencing operations to Labuan Bajo and Medan (Indonesia), as well as Okinawa (Japan), subject to regulatory and operational approvals.
On outlook, SIA group says that the global airline industry continues to face a volatile operating environment, with challenges ranging from geopolitical developments and macroeconomic fluctuations to changing market dynamics and supply chain constraints.
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“The group will remain vigilant in this dynamic operating environment, while identifying and capitalising on emerging areas of growth,” it says.
Shares in SIA Group closed 3 cents higher, or 0.396% up, at $7.60 on July 28.
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