Singapore Airlines (SIA) Group delivers strong first half Operating Profit

Here’s a clear breakdown of Singapore Airlines (SIA) Group’s latest financial results for the first half of FY2025/26:

Financial Performance
Operating Profit:
- Strong at $803 million, supported by healthy passenger demand and lower fuel prices.
- Marginally higher than last year (+0.9%).

Net Profit:
- Fell sharply to $239 million, down 67.8% year-on-year.
- Main drag: share of losses from Air India (equity accounted since Dec 2024 after Vistara’s integration).
- Lower interest income also contributed to the decline.

Revenue & Demand
- Group Revenue: Record $9,675 million, up 1.9% year-on-year.
- Passenger Traffic: 20.8 million passengers carried (+8.0%).
- Load Factor: 87.7% (+1.3 points).
- Passenger Yields: Declined 2.9% due to increased competition.
- Cargo Revenue: Down 2.8% to $1,071 million, with yields falling 4.1%.

Costs & Expenditure
- Total Expenditure: $8,872 million (+2.0%).
- Net Fuel Cost: Fell 6.7% due to lower fuel prices, despite hedging losses.
- Non-fuel Expenditure: Rose 5.9% from capacity expansion and inflationary pressures.

Fleet & Network
- Fleet Size: 208 aircraft (average age: 7 years 8 months).
- Scoot Expansion: New routes to Da Nang, Kota Bharu, Nha Trang, Okinawa, Chiang Rai, and more.
- Passenger Network: 129 destinations in 37 countries.
- Cargo Network: 133 destinations in 38 countries.

Dividends
- Special Dividend Plan: 10 cents per share annually over three years (~$0.9 billion total).
- Interim Dividend: 5 cents per share.
- Interim Special Dividend: 3 cents per share.
- Payment Date: 23 December 2025.

Strategic Initiatives
- Air India Stake: 25.1% ownership as part of multi-hub strategy with Tata Sons.
- Partnerships: Expanded codeshare with Garuda Indonesia and Vietnam Airlines.
- Brand Initiatives: New in-flight safety video with Singapore Tourism Board; “Time To Fly” travel fair offering 380,000 discounted tickets.

Outlook
- Passenger demand remains resilient heading into the year-end peak.
- Cargo outlook uncertain due to shifting trade policies and redeployed capacity.
- Challenges: geopolitical tensions, inflationary costs, and supply chain constraints.
- SIA remains confident with strong balance sheet, disciplined cost management, and focus on service excellence.

✨ In short: SIA’s core operations are strong, but net profit is weighed down by Air India’s losses and lower interest income. The group is balancing this with dividends, fleet expansion, and strategic partnerships.