PUBLISHED ONJuly 28, 2026 10:54 AMBYSean LerSingapore Airlines (SIA) posted a net loss of $76 million in the first quarter of 2026, the group reported on Tuesday (July 28).
Despite total revenue rising 19.3 per cent year-on-year to $5.7 billion in the reporting period, net profit fell from $186 million in the same quarter last year to record a loss of $76 million.
This was mainly due to a 78.5 per cent, or $991 million, increase in net fuel cost, the group said, noting that jet fuel prices which are typically priced on a lagged basis, experienced a surge from the ongoing Middle East crisis that began on Feb 28.
Meanwhile, non-fuel expenditure rose 7.4 per cent driven by overall capacity expansion and inflation pressure.
The sharp rise in fuel costs resulted in the group recording an operating profit of $106 million, a 73.8 per cent drop form the $299 million from a year ago.
This drop in operating profit, coupled with a higher share of losses of about $42 million from Air India, resulted in a net loss of $76 million.
This marks the first quarterly deficit for SIA Group since the Covid-19 pandemic ended, Reuters reported.
Despite this, SIA pointed out that the carrier holds one of the strongest balance sheets in the industry.
Its cash and bank balances grew by $1.17 billion to $9.1 billion, largely due to the $1.36 million in net cash generated by operations, $0.4 billion in proceeds from maturity of fixed deposits placed for tenors longer than 12 months, and $0.28 billion from the issuance of bonds.
Beyond the cash and bank balances, the group also declared that it holds $1.38 billion in fixed deposits placed for tenors longer than 12 months, and has access to $3.24 billion in committed lines of credit, all of which remaining undrawn.
In the first quarter, SIA took delivery of one Airbus A320neo and three Boeing 737-8 aircraft — bringing its operating fleet across both Scoot and SIA to 220 passenger and freighter aircraft — with another 62 aircraft on order.
Apart from expanding its reach in emerging growth markets in the Asia-Pacific region, and increasing capacity on selected European and Australian routes, SIA reiterated its commitment to Air India's long-term success.
It noted that "tangible progress" has been made in Air India’s fleet renewal and aircraft retrofit programmes, on-ground and in-flight service enhancements and operational performance.
"This has resulted in improvements in customer satisfaction scores and external recognition through industry rankings and awards," SIA said.
Subject to regulatory approvals, the group also has joint commercial partnerships with Malaysia Airlines and Air China in the works.
Looking ahead, SIA said that it expects demand for air travel to remain robust, underpinned by seasonal travel flows.
It also expects cargo demand to show resilience across most key verticals, with semiconductor and data centre-related movements fuelling it.
But it also noted the uncertainties presented by geopolitical developments, including the Middle East, with the most immediate impact on jet fuel prices.
SIA cautioned that a prolonged Middle East conflict may render any air fare and cargo rate adjustments insufficient to fully offset the impact of significantly higher fuel costs.
The situation could also go on to affect supply chains, global trade, and macroeconomic conditions.
"Against this backdrop, the SIA Group will continue to seize growth opportunities, leveraging its well-diversified global passenger and cargo network that is anchored by Singapore’s position as a strategic Asia-Pacific hub.
"Its dual-brand portfolio of Singapore Airlines and Scoot provides flexibility to calibrate capacity and schedules as demand patterns evolve, allowing it to remain nimble and agile," it said.
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