OCLTU

[SINGAPORE] Singapore Airlines posted a 43.9 per cent fall in net profit to S$133.9 million for its half year ended Sep 30, 2026, from S$238.5 million in the previous corresponding period.

The decline came as higher jet fuel prices due to the conflict in the Middle East weighed on operating profit, the mainboard-listed group said in a bourse filing on Wednesday (Nov 11).

Earnings per share stood at S$0.043 for the half year, down from S$0.079 the previous year.

The board declared an interim dividend of S$0.02 per share and an interim special dividend of S$0.05 per share, bringing the total payout to S$0.07.

This compared with S$0.08 a year earlier, comprising an ordinary dividend of S$0.05 and a special dividend of S$0.03.

The dividends will be paid on Dec 11, 2026.

The fall in net profit was partially offset by a lower share of losses from associate Air India and lower tax expenses.

Operating profit fell 29.1 per cent to S$569.2 million, from S$802.9 million a year earlier. 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.

Revenue for the half-year 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.

Passenger yields grew 12.1 per cent, while cargo yields rose 25.4 per cent.

On a quarterly basis, Q2 net profit rose to S$209.7 million, from S$52.4 million a year earlier.

Operating profit for the quarter grew 16.3 per cent to S$463.7 million.

Segment performance

Revenue from the full-service carrier segment, which operates under the Singapore Airlines brand, rose 16.1 per cent year on year to S$9.5 billion, from S$8.2 billion.

Its operating profit fell 31.7 per cent to S$574 million, from S$840.2 million.

The low-cost carrier segment, which operates under Scoot, saw revenue grow 29.4 per cent to S$1.4 billion, from S$1.1 billion.

It narrowed its operating loss to S$24 million, from S$39 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 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, it said. The group 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.