SINGAPORE– Singapore Airlines (SQ) reported a sharp decline in net profit for the third quarter of FY2026 despite delivering record quarterly revenue and higher operating earnings. The airline group, headquartered at Singapore Changi Airport (SIN), said net profit fell 68.9 percent year on year to S$505 million for the quarter ended December.
The decline reflected the absence of a S$1.1 billion one-off, non-cash gain recorded in the previous year following the disposal of Vistara after its merger with Air India (AI). Excluding that exceptional item, the group’s core operations showed resilience, supported by steady passenger demand and improved load factors.
Singapore Airlines’ Q3 Financial Performance
Singapore Airlines posted an operating profit of S$792 million for the quarter, up 25.9 percent from a year earlier. Revenue reached a record S$5.5 billion, representing a 5.5 percent increase driven primarily by passenger growth.
The airline carried 10.9 million passengers during the quarter, marking a 6.3 percent rise year on year. Passenger load factor improved by 0.3 percentage points to 87.5 percent, reflecting sustained travel demand across key markets.
Earnings per share declined to S$0.161 from S$0.547 in the prior year due to the absence of the exceptional gain. Net asset value per share increased to S$5.03 as at end-December, compared with S$4.98 at end-March.
Associate Loss Impact for SQ
According to Business Times, the group’s share of losses from associated companies surged by S$163 million to S$178 million in Q3. This increase stemmed largely from recognizing a full quarter of losses from Air India, compared with only one month in the previous corresponding period.
For the first nine months of FY2026, net profit fell 68.6 percent to S$743 million despite revenue rising 3.2 percent to a record S$15.2 billion. Operating profit for the nine months grew 11.9 percent to S$1.6 billion.
Associated company losses for the nine months totaled S$580 million, significantly weighing on bottom-line performance. Earnings per share for the nine months declined to S$0.243 from S$0.751 a year earlier.
Singapore’s Passenger and Cargo Trends
Passenger traffic for the first nine months reached 31.6 million, up 7.4 percent year on year. Passenger load factor increased by 1.1 percentage points to 87.7 percent, demonstrating stable network performance.
The SIA Group’s passenger network covered 134 destinations in 37 countries and territories as of the end of December. Both Singapore Airlines and its low-cost subsidiary Scoot each served 79 destinations during the period.
Cargo performance remained mixed amid global trade uncertainties. Cargo loads were flat year on year in Q3, while cargo load factor slipped 0.1 percentage point to 56.3 percent due to lower capacity and fleet redeployment.
For the nine months, cargo load factor declined 0.6 percentage points to 56.5 percent. The group noted that while passenger demand remains healthy heading into the March quarter, cargo markets face ongoing geopolitical and trade-related challenges.
Singapore Airlines shares closed at S$7.03, up 1 percent, before the release of its financial results. The carrier reaffirmed its long-term commitment to supporting Air India’s transformation while maintaining focus on operational discipline and network growth.
Credit: aviationa2z
