SIA Q2 net profit quadruples to S$209.7 million on better unit revenue, lower Air India losses
The board has declared interim ordinary and special dividends totalling S$0.07 a share
[SINGAPORE] Singapore Airlines (SIA) posted a net profit of S$209.7 million for its second quarter ended Sep 30, 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).
Revenue rose 14.3 per cent to a record S$5.6 billion, from S$4.9 billion previously. Operating profit rose 16.3 per cent to S$463.7 million, from S$398.4 million 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 first half of FY2026, SIA’s net profit fell 43.9 per cent to S$133.9 million, from S$238.5 million a year earlier.
A weaker Q1 was the main drag, with operating profit down 73.8 per cent as higher jet fuel prices due to 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 price for the six months was 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.
Basic earnings per share stood at S$0.067 for Q2, up from S$0.017 a year earlier.
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For H1, the figure came in at S$0.043, down from S$0.079.
The board declared an interim ordinary dividend of S$0.02 a share and an interim special dividend of S$0.05 a share, bringing the total payout to S$0.07 a share.
This compares with the year-ago payout of S$0.08 a share, comprising an ordinary dividend of S$0.05 a share and a special dividend of S$0.03 a share.
The dividends will be paid out 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$9.6 billion in H1, from S$8.2 billion a year earlier.
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 H1 evenue 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 that passenger demand remains healthy, supported by seasonal travel flows, while cargo demand has been firm. It noted that “jet fuel prices remain elevated relative to pre-conflict levels, and continue to place 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, adding that 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.
