DNQUF

[SINGAPORE] Singapore Airlines (SIA) posted net profit of S$209.7 million for its second quarter ended Sep 30, 2026, up from S$52.4 million in the previous corresponding period.

This was due to stronger operating profit and a lower share of losses from associate Air India, the mainboard-listed group said in a regulatory filing on Wednesday (Nov 11).

Operating profit for the quarter rose 16.3 per cent to S$463.7 million, from S$398.4 million a year earlier.

Revenue for the quarter rose 14.3 per cent to a record S$5.6 billion, from S$4.9 billion a year earlier.

Passenger yields grew 12.2 per cent, while cargo yields rose 22.3 per cent. Fuel cost before hedging climbed 63.3 per cent, but hedging gains of S$355 million partly cushioned the impact.

For the half year, net profit fell 43.9 per cent to S$133.9 million, from S$238.5 million a year earlier.

The weaker first quarter was the main drag, with operating profit down 73.8 per cent as higher jet fuel prices, amid the conflict in the Middle East, weighed on earnings.

H1 operating profit fell 29.1 per cent to S$569.2 million, from S$802.9 million. Average jet fuel prices for the six months were US$171 per barrel, 86.7 per cent higher year on year. Fuel hedging gains of S$806 million partly cushioned the impact.

H1 revenue rose 16.8 per cent to a record S$11.3 billion, from S$9.7 billion a year earlier. This was driven by record passenger carriage of 21.8 million and stronger yields.

Basic earnings per share stood at 6.7 cents for the quarter, up from 1.7 cents a year earlier.

For the half year, it stood at 4.3 cents, down from 7.9 cents.

The board declared an interim ordinary dividend of 2 cents per share and an interim special dividend of 5 cents per share, bringing the total payout to 7 cents.

This compares with 8 cents a year earlier, comprising an ordinary dividend of 5 cents and a special dividend of 3 cents. The dividends will be paid on Dec 11, 2026.

Segment performance

Revenue from the full-service carrier segment, which operates under the Singapore Airlines brand, rose 16.1 per cent to S$9,555.4 million for the half year, from S$8,233.8 million a year earlier. Its operating profit fell 31.7 per cent to S$574.0 million, from S$840.2 million.

The low-cost carrier segment, which operates under Scoot, saw revenue grow 29.4 per cent to S$1,391.4 million, from S$1,075.1 million. It narrowed its operating loss to S$24.0 million, from S$39.0 million.

Revenue from the engineering services segment fell 7.1 per cent to S$294.2 million, from S$316.7 million, but operating profit rose to S$25.7 million from S$13.0 million.

SIA said passenger demand remains healthy, supported by seasonal travel flows, while cargo demand has been firm. It added that jet fuel prices remain elevated relative to pre-conflict levels and continue to put significant pressure on costs.

While the group has adjusted air fares and cargo rates, these measures do not fully offset the impact of sustained high fuel prices, SIA said. It will maintain disciplined cost management and continue to invest strategically in SIA and Scoot.

Shares of SIA closed S$0.03 or 0.4 per cent higher at S$7.17 before the announcement.