Singapore Airlines Reports First Quarterly Loss Since 2022

Singapore Airlines reported a net loss of approximately S$76 million for the first quarter ending June 30, marking its first quarterly loss since the pandemic in early 2022. This is a sharp reversal from the S$186.1 million profit recorded during the same period the previous year. The group's operating profit fell 73.8% to S$105.5 million.

The loss was driven by a S$991 million surge in net fuel costs, which rose 78.5% to S$2.25 billion following a Middle East conflict that began on February 28. Additional financial pressure came from a S$42 million drag linked to Air India, in which the group holds a 25.1% stake. Tata Sons, the majority owner of Air India, indicated that the carrier's turnaround could take up to a decade.

Despite these headwinds, the company achieved record quarterly revenue of S$5.71 billion, a 19.3% year-on-year increase. Strong demand saw passenger volume grow 6.3% to 10.9 million travelers across the main carrier and its budget subsidiary, Scoot. Passenger revenue grew 18.6% to S$4.58 billion, supported by a 12% rise in passenger yields.

Market reaction was mixed. While shares initially traded at S$7.77 on the Singapore Exchange following the report, they later fell 3.1% to close at S$7.53 on July 29. The company warned that prolonged geopolitical tensions continue to inflate fuel prices and create operational uncertainty.