Singapore Airlines (C6L) H2 2026 earnings summary

Executive summary

• Achieved record revenue of SGD 20.522 billion (+5.0% YoY) for FY2025/26, driven by strong passenger demand and higher yields, with a record second-half operating profit.

• Operating profit rose 39% YoY to SGD 2.47 billion, but net profit declined 57% YoY to SGD 1.18 billion due to the absence of a prior year one-off gain and full-year Air India losses.

• Maintains one of the strongest balance sheets in the airline industry, with a debt-to-equity ratio of 0.62 and equity of SGD 17.262 billion.

• Proposed total dividend payout of SGD 0.37 per share for FY25/26, including ordinary and special dividends.

• Passenger capacity increased 3.47%, cargo capacity grew 1.4%, and overall capacity rose 2.5% YoY.

Financial highlights

• Passenger flown revenue grew 5.2% YoY to SGD 16.666 billion, while cargo revenue declined 2.0% YoY to SGD 2.167 billion.

• Total expenditure increased 1.8% YoY, with non-fuel costs up 5.4% due to capacity expansion and inflation.

• Net fuel costs decreased 6.7% YoY to SGD 5.025 billion due to lower fuel prices, a weaker USD, and hedging gains.

• EBITDA margin for the year was 21.9%.

• Strong cash balance of SGD 7.931 billion, or SGD 9.6 billion including long-term deposits.

Outlook and guidance

• Expectation of continued yield growth in the first half of the 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 SGD 4 billion annually over the next four years, peaking at SGD 4.5 billion in FY27/28.

• Fuel hedging program in place, with 28-35% of fuel needs hedged for FY26/27 at average prices of $65-68/bbl.

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