How SIA Group Maintains Strong Operating Profit While Air India’s Struggles Affect Net Earnings

Strong Operating Performance in the First Half of FY2025/26

The SIA Group recorded an operating profit of USD 803 million in the first half of the 2025/26 financial year, underscoring the resilience of air travel demand alongside reduced fuel costs. This achievement sets a positive tone despite challenges that curbed net earnings.

Group revenue saw a rise to USD 9.675 billion, a 1.9% increase year-on-year. This growth was largely fueled by sustained passenger traffic, with Singapore Airlines and Scoot collectively transporting 20.8 million passengers — an 8% jump compared with the prior year. An improved passenger load factor of 87.7% was also reported, marking a 1.3 percentage point increase as demand outpaced capacity.

Passenger and Cargo Dynamics

While passenger numbers were robust, yields per passenger declined by 2.9% due to competitive market conditions. Cargo operations, meanwhile, faced headwinds with revenue dropping 2.8% to USD 31 million less than the previous period. Cargo yields softened by 4.1% and the cargo load factor fell to 56.5%, signaling ongoing pressure in this segment.

Expenses and Fuel Cost Trends

Total group expenditure increased modestly by 2% to USD 8.872 billion. Notably, non-fuel costs rose by 5.9%, reflecting expanded capacity and inflation impacts. On the bright side, fuel costs dropped by 6.7% thanks to a significant 12.7% fall in fuel prices, though this benefit was partially dampened by higher fuel volumes and shifts from hedging gains to losses.

Metrisk	USD (million)	Change YoY
Operating Profit	803	+Marginal increase
Net Profit	239	-67.8%
Totala intäkter	9,675	+1.9%
Expenditure	8,872	+2%
Passenger Load Factor	87.7%	+1.3 points

Impact of Air India Losses on Net Earnings

Despite the operating profit uplift, net profit dropped sharply by 67.8% to USD 239 million. Two major factors explain this decline: a USD 103 million dip in interest income and notably, a USD 417 million reduction due to the Group’s share of losses from associated companies, particularly Air India. The timing follows Vistara’s full integration into Air India in December 2024, which brought Air India’s financial performance into the Group’s accounts.

Kvartalsvisa höjdpunkter

The second quarter stood out with an operating profit growth of 22.5%, hitting USD 398 million. The revenue for the quarter set a record at USD 4.885 billion, propelled by a 2.2% rise in passenger flown revenue. However, cargo revenues again suffered from soft yields and lower load factors. Meanwhile, group expenditure in the quarter inched up only slightly by 0.7% to USD 4.486 billion.

Financial Strength and Fleet Expansion

As of 30 September 2025, the Group’s shareholders’ equity stood sturdy at USD 15.5 billion. Debt levels were lowered significantly by USD 2 billion, bringing the debt-to-equity ratio down to a healthy 0.70 times. The cash and bank balances at closing reached USD 6.4 billion, supported by ongoing operational cash generation despite dividend payouts and debt repayments.

Additionally, USD 2.1 billion is held in long-term fixed deposits with USD 3.3 billion in undrawn committed credit lines, providing a robust financial cushion.

Fleet and Network Outlook

The Group operated 208 aircraft with 67 more on order, focusing on meeting peak travel seasons by boosting frequencies to popular destinations, particularly within Southeast Asia. Expansion and network development remain key strategic priorities moving forward.

Enhancing Partnerships and Customer Experience

Strengthening regional partnerships and commercial integration continues with initiatives such as new codeshare agreements, an updated in-flight safety video, and revisions to the KrisFlyer loyalty program—all efforts aimed at elevating the customer proposition.

Capital Return Plan and Dividends

The Group unveiled a multi-year capital return plan involving a 10-cent special dividend per share annually over three years. For the current financial year, interim dividends comprising a 3-cent special dividend plus a 5-cent regular dividend per share will be paid on 23 December 2025.

Outlook and Industry Risks

Looking ahead, air travel demand for the year-end is expected to hold strong, reinforced by disciplined capacity management. Cargo markets remain unpredictable with ongoing pressure on yields. Broader industry risks include inflation and supply chain constraints. Nevertheless, the Group leans on its solid balance sheet, rigorous cost discipline, and ongoing investments in service, product offerings, and network enhancement to navigate challenges.

Sammanfattning

The SIA Group has demonstrated resilience through a strong first-half operating profit and a firm revenue base, despite some headwinds affecting profitability due to associate losses and narrower interest income. Its financial prudence coupled with network and fleet growth initiatives sets a balanced framework to manage future uncertainties.

The Bigger Picture for Taxi and Transfers

In the broader travel ecosystem, flourishing airline operations translate into more reliable passenger flows into major airports, increasing demand for quality taxi and transfer services. When planning airport transfers or city rides around key destinations served by SIA Group’s airlines, platforms like GetTransfer.com offer unbeatable transparency. Users can select their exact vehicle from a comprehensive range, see detailed car information such as make, model, and driver ratings, and lock in fares upfront—eliminating surprises and ensuring seamless onward journeys.

Why Personal Experience Always Counts

While impressive earnings reports and honest feedback highlight important insights about an airline group’s health and service prospects, nothing beats the firsthand experience to fully appreciate the journey quality. On GetTransfer, travelers can hire cars with drivers from verified providers at competitive prices, making it easier to decide without risking overspending or disappointment. The platform’s extensive vehicle options, affordability, and transparent pricing give users the ultimate choice and convenience in their travel mobility needs. Boka din resa GetTransfer.com.

Blickar framåt

Although the direct global impact of this financial update on tourism might be limited, it remains important within the Southeast Asian and global aviation markets. GetTransfer stays tuned to such trends, ensuring travelers have access to reliable and flexible transfer options worldwide. Start planning your next adventure with confidence by securing your transfer via GetTransfer.

Slutliga tankar

In essence, the SIA Group’s first-half performance reflects a travel industry on the rebound, balancing operational strength against external challenges. For travelers, this translates into increased flight options and destinations, which in turn fuels demand for efficient transport from airports to final locations. Leveraging services like GetTransfer.com guarantees a stress-free, cost-effective way to book personalized taxis and transfers. Transparency, competitive fares, a range of vehicle choices, and trusted local drivers are the keys to smooth connections that match the evolving travel landscape. Whether booking airport transfers in a bustling city or arranging seamless intercity rides, having the exact car and best driver lined up beforehand is the smart way to go.