Singapore Airlines (C6L) H2 2026 earnings summary

Executive summary

• Achieved record revenue of $20.52B (SGD 20.5B) for FY2025/26, up 5.0% YoY, driven by strong passenger demand and higher yields, especially in the second half.

• Operating profit rose 39% YoY to $2.47B (SGD 2.47B), with a record second-half operating profit.

• Net profit declined 57.4% YoY to $1.18B, mainly due to the absence of a prior year one-off gain and full-year Air India losses.

• Record 42.4M passengers carried (+7.7% YoY); passenger load factor increased to 87.7%.

• Maintains one of the strongest balance sheets in the airline industry, with a debt-to-equity ratio of 0.62 and equity of $17.26B.

Financial highlights

• Total expenditure increased 1.8% YoY to $18.15B, with non-fuel costs up 5.4% and net fuel cost down 6.7%.

• Passenger flown revenue grew 5.2% YoY to $16.67B; cargo revenue declined 2.0% YoY to $2.17B.

• EBITDA margin for the year was 21.9%.

• Proposed total dividend payout of 37 cents per share, including ordinary and special dividends.

• Cash and bank balances at $7.9B, or $9.6B including long-term deposits.

Outlook and guidance

• Expectation of continued yield growth in the first half of next year, though fare increases will not fully offset higher fuel costs.

• Operating fleet expected to expand to 224 aircraft by end FY26/27, with nine new deliveries and three retirements.

• Average CapEx projected at nearly $4B annually over the next four years, peaking at $4.5B in FY27/28.

• Fuel hedging program covers 28-35% of FY26/27 needs at $65-68/bbl.

• Focus on network expansion, digital transformation, and sustainability, including SAF adoption and net zero carbon target by 2050.