Singapore Airlines (SIA) continues to demonstrate why it remains one of the most respected carriers globally.
With a combination of strong operational fundamentals, strategic investments, and ambitious modernization plans, the airline is positioning itself for sustained growth despite facing near-term challenges.
Our comprehensive analysis examines Singapore Airlines’ current performance, strategic initiatives, and future trajectory as it heads into 2026.
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Financial Performance: Operational Strength Amid Investment Headwinds
Singapore Airlines reported a strong operating profit of SGD 803 million for the first half of fiscal year 2025/26, representing a marginal 0.9% increase year-over-year.
However, net profit experienced a significant decline of 67.8%, falling to SGD 239 million from SGD 742 million in the previous year.
This divergence between operating and net profit warrants closer examination to understand the underlying business dynamics.
Financial Metric | H1 FY2025/26 | H1 FY2024/25 | Change (%) |
|---|---|---|---|
Total Revenue | SGD 9,675M | SGD 9,497M | +1.9% |
Operating Profit | SGD 803M | SGD 796M | +0.9% |
Net Profit | SGD 239M | SGD 742M | -67.8% |
EBITDA | SGD 1,855M | SGD 2,288M | -18.9% |
EBITDA Margin | 19.2% | 24.1% | -4.9 pts |
The airline carried 20.8 million passengers during the first half, an 8.0% increase year-over-year, with passenger load factor climbing 1.3 percentage points to 87.7%. Revenue passenger-kilometers grew 4.6%, outpacing capacity expansion of 3.0%, demonstrating healthy demand fundamentals.
Nevertheless, passenger yields declined 2.9% to 9.9 cents per passenger-kilometer, reflecting intensified competition across key markets.
The primary factor behind the net profit decline was SIA’s 25.1% stake in Air India, which contributed SGD 295 million in losses during the period. This investment forms part of SIA’s multi-hub strategy to gain exposure to India’s rapidly expanding aviation sector.
The airline’s interest income also fell by SGD 103 million due to lower cash balances and interest rate cuts.
