Singapore Airlines Group reported record half-year revenue of S$11.3 billion, supported by higher passenger demand and increased traffic at both Singapore Airlines and its low-cost subsidiary Scoot. The result represents a 16.8% year-on-year increase in revenue, but profitability weakened as fuel became substantially more expensive.
Combined passenger numbers for the two airlines reached 21.8 million during the half-year, an increase of 5% compared with the corresponding period last year. The group also said it benefited from travellers choosing to transit through Asia rather than the Middle East, although it noted that geopolitical developments were adding complexity to operations and supply chains.
Fuel pressure weighs on earnings
Net profit declined to S$134 million, from S$239 million in the same period a year earlier. Singapore Airlines Group attributed much of the reduction to a 56% year-on-year rise in net fuel costs. Fuel hedging limited some of the effect, while fare and cargo-rate adjustments provided additional support but did not fully compensate for the sustained increase in fuel expenditure.
| Measure | Latest half-year | Comparison |
|---|---|---|
| Group revenue | S$11.3 billion | Up 16.8% year on year |
| Passengers carried | 21.8 million | Up 5% year on year |
| Net profit | S$134 million | Down from S$239 million |
| Net fuel costs | Not disclosed as an absolute figure | Up 56% year on year |
The group said fuel prices remained elevated compared with levels before the conflict in the Middle East. It also warned that a prolonged conflict could affect wider economic conditions, add to inflationary pressures and influence demand. The comments underline the gap between strong traffic and revenue performance and the difficulty of converting that demand into earnings when operating costs rise sharply.
“Jet fuel prices remain elevated relative to pre-conflict levels, and continue to place significant pressure on costs. While the group has adjusted airfares and cargo rates, these measures do not fully offset the impact of sustained high fuel prices.”
Alongside the results, Singapore Airlines unveiled new cabin products at an event on 6 November. The programme covers First Class, Business Class, Premium Economy Class and Economy Class, with changes including a new KrisWorld in-flight entertainment system, revised dining and beverage options, updated passenger amenities, high-speed connectivity, upgraded lounges and enhanced ground services.
New cabin products across four classes
The proposed Business Class product will include an adaptable personal space with sliding doors and adjustable dividers, as well as fully flat beds that can be configured for companion-bed use. The group did not provide a deployment timetable in the reported results, but presented the changes as part of a wider update to the onboard and ground experience.
- Group revenue rose to S$11.3 billion during the half-year.
- Singapore Airlines and Scoot carried 21.8 million passengers, 5% more than a year earlier.
- Net profit fell to S$134 million as net fuel costs increased 56% year on year.
