SINGAPORE: Singapore Airlines Group (SIA)'s net profit dropped 57.4 per cent to S$1.18 billion (S$1=RM3.08) for the financial year ended March 31, 2026 (FY2026) from S$2.78 billion in the preceding year.
The decline was due to the absence of the S$1.10 billion non-cash accounting gain recognised in November 2024 upon the completion of the Air India-Vistara merger, it said in a statement on Thursday.
Meanwhile, the group reported a record revenue of S$20.52 billion for FY2026, up S$982 million or five per cent year-on-year from S$19.54 billion previously.
On prospect, SIA stressed that heightened geopolitical tensions, including the conflict in West Asia are a major headwind for the airline industry.
In view of the geopolitical situation in West Asia, SIA and Scoot have suspended services to Dubai, the United Arab Emirates and Jeddah, Saudi Arabia, respectively since Feb 28, 2026.
The most immediate impact is on jet fuel prices, which have more than doubled since the conflict began, adding significant cost pressure for airlines, the group said.
"As the group’s fuel bills are typically priced on a lagged basis, the impact is only partially reflected in March 2026. The full impact is expected to feed through FY2027.
"While SIA and Scoot have raised air fares across their network, the adjustments do not fully offset the rise in the price of jet fuel, which is the group’s single-largest expenditure item," it added.
The group also warned that broader implications for supply chains and macroeconomic conditions affecting demand patterns may persist depending on the duration and how the situation in West Asia develops. - Bernama
