SIA Q3 operating profit up 26% on record revenue; net earnings down 69% in absence of one-off gain

[SINGAPORE] Singapore Airlines’ (SIA) net profit for the third quarter ended December tumbled 68.9 per cent to S$505 million, the national carrier said in a regulatory filing on Tuesday (Feb 24).

The drop was due to the absence of a one-off, non-cash gain of S$1.1 billion booked in the year-ago period, following the disposal of Vistara airline after it merged with Air India in November 2024.

Operating profit for Q3 rose 25.9 per cent to S$792 million on a record quarterly revenue of S$5.5 billion, which was up 5.5 per cent.

Its share of losses from associated companies including Air India rocketed by S$163 million to S$178 million. This was because the group recognised a full-quarter share of the Indian airline’s losses this year compared with only one month the year before, SIA explained.

Nonetheless, it is “firmly” committed to working with partner Tata Sons to support Air India’s transformation. SIA reiterated its bullishness on the long-term prospects of the joint venture, in which it holds a 25.1 per cent stake.

For Q3 of the 2026 financial year, earnings per share declined to S$0.161, from S$0.547 in the year-ago period. Net asset value per share stood at S$5.03 as at end-December, higher than the S$4.98 as at end-March.

The airline group carried 10.9 million passengers in Q3 FY2026, 6.3 per cent higher on the year.

Passenger load factor, which is passenger traffic expressed as a percentage of passenger capacity, came in at 87.5 per cent. This was up 0.3 percentage point from the corresponding year-ago period. But its cargo load factor slid 0.1 percentage point to 56.3 per cent.

The group’s passenger network covered 134 destinations in 37 countries and territories as at end-December, with the full-service carrier and its budget airline Scoot each serving 79 destinations.

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The SIA cargo network comprised 138 destinations in 38 countries and territories.

Nine-month results

Similarly, the group posted a 68.6 per cent decline in net profit to S$743 million for the nine months ended December – despite revenue growing 3.2 per cent to a record high of S$15.2 billion, and operating profit expanding 11.9 per cent to S$1.6 billion.

The lower net profit was attributed mainly to the absence of the one-off gain from the disposal of Vistara, and a higher share of losses from associated companies that stood at S$580 million.

Earnings per share dropped to S$0.243 for the first three quarters, from S$0.751 in the year-ago period.

The airline group carried 31.6 million passengers in the first nine months of FY2026, up 7.4 per cent year on year. Passenger load factor was up 1.1 percentage points at 87.7 per cent. However, its cargo load factor dropped 0.6 percentage point to 56.5 per cent.

Outlook

The group noted that demand for air travel is healthy heading into the March quarter. But the cargo segment remains uncertain amid trade and geopolitical developments.

SIA shares closed Tuesday at S$7.03, up S$0.07 or 1 per cent, before the financial results were released.