SIA’s first-half profit falls 43.9% as fuel costs bite

Detailed summary

This was despite a 16.8% rise in revenue for the first half to $11.3 billion. Read more at straitstimes.com.

SIA had a strong second quarter, with operating profit up 16.3% year on year to $463 million and net profit quadrupling to $210 million over the same period.

SINGAPORE – High fuel costs continued to weigh on Singapore Airlines’ earnings, as the airline reported on Nov 11 a 43.9% slump in net profit to $134 million for the first half of its 2027 financial year.

This was despite a 16.8% rise in revenue for the first half to $11.3 billion, driven by stronger demand for both passenger travel and air cargo.

The group noted strong seasonal travel demand and said cargo demand remained firm, supported by shipments linked to semiconductors and cloud computing. Geopolitical and weather-related disruptions to sea freight also prompted some shippers to switch to air freight.

SIA had a strong second quarter, with operating profit up 16.3% year on year to $463 million and net profit quadrupling to $210 million over the same period.

This came on the back of a 14.3% year on year increase in total revenue to $5.6 billion.

Still, the carrier’s total expenditure rose by 14.1% to a hefty $5.1 billion over the same period. This was mainly due to a surge in fuel prices as a result of the war in the Middle East, with the group’s fuel costs before hedging rising 63.3% to $2.1 billion during the quarter.

The group declared a total dividend of seven cents per share for the first half, comprising an interim two-cent ordinary dividend and five-cent special dividend.

While it has adjusted air fares and cargo rates to overcome complexities in its operations and supply chains, these measures do not fully offset the impact of sustained high fuel prices, SIA said.

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