Singapore Airlines posts 57% drop in annual profit, flags surging fuel costs

Singapore Airlines posted a 57.4 per cent drop in full-year net profit on Thursday (May 14), warning that higher fuel costs were still filtering through and would weigh more fully in the year ahead.

The closure of the Strait of Hormuz following the outbreak of the US-Israeli war on Iran in late February has sent jet fuel prices surging far beyond the rise in crude prices, compounding cost pressures across the global aviation industry.

The impact on expenditure was only partially reflected in March 2026, as the group's fuel bills are typically priced on a lagged basis, Singapore's flag carrier said.

"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 said.

The full impact of the surge is expected to feed through in the next year, the statement added.

The company's net profit of $1.18 billion came in above Visible Alpha's consensus estimate of $1.08 billion. Last year, it booked a one-time gain of $1.1 billion from the full integration of its Vistara joint venture into Air India.

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