Fuel costs, Air India losses push SIA into Q1 red despite record revenue

Record passenger and cargo revenue failed to offset a 78.5 per cent jump in net fuel costs and higher losses from Air India, sending the airline group to a S$76 million quarterly loss.

SINGAPORE: The Singapore Airlines (SIA) Group on Tuesday (Jul 28) announced a net loss of S$76 million (US$58.9 million) in the first quarter of 2026, as soaring fuel costs linked to the Middle East conflict and a higher share of losses from Air India outweighed record revenue.

Operating profit fell S$299 million to S$106 million, the airline said, driven by a S$991 million jump in net fuel costs due to the Middle East conflict. The group's net result was further weighed down by a S$42 million higher share of losses from Air India.

Net results declined by S$262 million to a loss of S$76 million, compared with a profit of S$186 million a year ago.

This marks the first quarterly deficit for SIA Group since the COVID-19 pandemic ended, according to Reuters.

The airline also reported record revenue of S$5,714 million in Q1, thanks to a 19.3 per cent (S$924 million) year-on-year rise in revenue driven by strong demand.

However, group expenditure rose by 27.9 per cent to S$5,609 million, mainly due to a sharp increase in net fuel cost to S$2,253 million.

SIA owns a 25.1 per cent stake in Air India, which reported a record US$2 billion loss for the last financial year and has been under scrutiny since a plane crash that killed 260 people in 2025.

The airline’s owner Tata Sons said on Monday that its turnaround could take up to a decade, extending the timeline for the carrier’s turnaround.

Tata Sons chairman attributed the longer turnaround time to persistent supply-chain disruptions in key components, the need to overhaul legacy systems, culture, fleet, and efforts to build a larger technical and airline workforce.

SIA said on Tuesday that, together with Tata Sons, it remains committed to Air India's long-term transformation and described its investment as a key pillar of its multi-hub strategy.

In May, SIA CEO Goh Choon Phong said Air India's transformation was a “long game” with “no shortcut”.