Fuel costs, Air India losses push SIA into Q1 red despite record revenue

The Singapore Airlines (SIA) Group has announced a net loss of S$76 million for the first quarter of 2026, a stark reversal from the profit recorded a year prior. This marks the airline group's first quarterly deficit since the end of the COVID-19 pandemic, signaling a challenging period ahead.

The financial downturn was primarily attributed to a substantial increase in fuel costs, which surged by S$991 million due to the ongoing conflict in the Middle East. Compounding these issues, the airline's share of losses from its investment in Air India also rose by S$42 million, further weighing down the group's net results. Operating profit saw a significant decline of S$299 million, settling at S$106 million.

Despite these headwinds, SIA Group reported record revenue of S$5,714 million for the quarter, a 19.3 percent increase year-on-year, fueled by robust travel demand. However, group expenditure climbed by 27.9 percent to S$5,609 million, largely driven by the sharp rise in net fuel costs to S$2,253 million. SIA holds a 25.1 percent stake in Air India, which itself reported a record US$2 billion loss for its last financial year and faces a potential decade-long turnaround, according to its owner Tata Sons.

“

SIA CEO Goh Choon Phong said Air India's transformation was a “long game” with “no shortcut”.