Singapore Airlines (SIA) announced a 39% year-on-year increase in operating profit to S$2.4 billion for the financial year ended March 31, 2026, driven by record revenues of S$20.5 billion and 42.4 million passengers carried [1, 2, 3, 4, 5]. Despite the operating gains, the carrier’s net profit dropped 57.4% to about S$1.18 billion. This was mainly due to the absence of a one-time non-cash gain of S$1.1 billion recognized in November 2024 related to the Air India-Vistara merger, as well as losses from SIA’s 25.1% stake in Air India [1, 2, 3, 4, 5].
SIA’s associate company loss from Air India reached between S$846 million and S$945.2 million for the year. Air India posted losses of approximately S$3.8 billion (US$2 billion) amid various challenges including the closure of Pakistan’s airspace to Indian carriers since April 2025, a fatal Air India Flight 171 crash in June 2025 that killed over 250, and disruptions caused by the Iran conflict affecting Middle East connectivity [1, 2, 3, 6, 5, 7, 8].
SIA Chief Executive Officer Goh Choon Phong said, "We have never had any illusion that it is an easy path. It is going to be a long game. There is no shortcut." He also acknowledged the transformation of Air India "is definitely not going to be a walk in the park" but affirmed SIA’s support for the Indian carrier [6, 7].
The company continues to face cost pressures from higher jet fuel prices linked to the Middle East conflict and the closure of the Strait of Hormuz since late February 2025, which have increased operating expenses [1, 2, 3, 4, 9, 10, 11]. SIA and its low-cost unit Scoot have raised airfares to partially offset fuel cost increases but have not passed on the full cost to maintain competitiveness. "Airfares have not been increased to a point where they fully cover the fuel price hikes, because otherwise we will have no passengers," said SIA Chief Commercial Officer Lee Lik Hsin [1, 2, 3, 9, 10, 11].
Despite the challenges, SIA expanded capacity to Europe by 13%, adding new routes such as flights to Madrid and Munich, while other airlines cut services due to fuel costs and geopolitical issues [9, 10].
As of March 31, 2026, SIA’s carrying value for its Air India investment was S$1.1 billion against a total cost of S$2.1 billion, with impairment indicators due to ongoing difficult conditions and geopolitical uncertainty [7, 8].
The board recommended a final ordinary dividend of 22 Singapore cents per share for FY2025/26, bringing total dividends to 27 cents per share for the year, along with a special dividend package totaling 10 cents per share. The special dividend is expected to be paid in two tranches, with the second tranche subject to approval and planned for August 28, 2026 [1, 2, 3, 4].
SIA’s earnings per share for FY2025/26 was 38.4 Singapore cents, exceeding analyst expectations of 35 cents [5]. The airline plans to launch new flights to Madrid and a thrice-weekly service to Munich in October 2026 [9, 10].
