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The SIA Group reported a net loss of $59 million for the three months ended June 30 compared with a profit of $137 million in the same quarter a year earlier. Group revenue climbed 19.3 percent to a record $4.42 billion with passenger revenue up 18.6 percent as yields increased 12 percent. Singapore Airlines and Scoot together carried a record 10.9 million passengers, 6.3 percent more than the prior year, while cargo revenue rose 33.5 percent to approximately $547 million on improved yields and load factors.
According to an analysis in Gulf Times, nearly every operational metric pointed to a record quarter yet the group still posted a loss because the net fuel bill jumped 78.5 percent to about $1.74 billion, accounting for the entire swing in the result. Total expenditure advanced 27.9 percent, exceeding revenue growth, which caused operating profit to decline 73.8 percent to roughly $82 million. The fuel cost surge stemmed from heightened risks in Gulf airspace and the Strait of Hormuz linked to the Mideast conflict and associated US actions against Iran.
Gulf Times reported that as conflict escalated, millions of travellers rerouted away from the Gulf, boosting traffic through Asian hubs including Singapore and contributing to the carrier’s record passenger haul. The instability also affected Singapore Airlines’ network directly with Dubai services remaining suspended, the Riyadh route launch deferred until December and Scoot’s Jeddah operation halted in July. Longer routings forced by airspace closures have further increased fuel consumption on top of the higher prices.
Aviation analyst Alex Macheras wrote in Gulf Times that the outcome previews challenges for the broader industry since even the best-run long-haul carrier struggled to stay profitable through the fuel shock while handling record traffic. The group also absorbed a $32 million increase in its share of losses from Air India, where it holds a 25.1 percent stake, as the turnaround at the Indian carrier is projected to require five to 10 years. A press release from Singapore Airlines in May detailed record full-year passenger traffic of 42.4 million in fiscal 2025/26, up 7.7 percent, alongside a 39 percent increase in operating profit to $2.375 billion.
The company said it boasts more than $8 billion in cash and deposits, affording it the flexibility to absorb the quarterly loss without lasting strain. Singapore Airlines has cautioned that a prolonged conflict in the Middle East would disrupt supply chains, global trade and the wider macroeconomic conditions on which air travel depends. Macheras concluded that the loss reflects the prevailing environment rather than any issues with demand or the airline’s core business.
Geopolitical factors have elevated fuel to a central variable in determining airline profitability, a situation well understood by Gulf carriers that have incorporated resilience measures into their operations, according to the Gulf Times analysis. The Singapore Airlines result serves as a reminder of the industry’s vulnerability to distant events even after rebuilding finances in the post-pandemic period. Industry data from the carrier shows continued robust demand for air travel into the current fiscal year.
