SIA Group’s Solid Operating Profit in First Half FY2025/26 and Effects on Net Earnings Amidst Air India Losses

Robust Operating Performance Anchors SIA Group’s First Half of FY2025/26

The SIA Group has reported a commendable operating profit of USD 803 million during the first half of fiscal year 2025/26, bolstered by steady travel demand and a favorable decrease in fuel costs. Despite these impressive operational results, the Group witnessed a significant fall in net profit to USD 239 million. This decline primarily reflects the dual impact of reduced interest income and the financial setbacks from its associate, Air India.

Revenue and Passenger Dynamics: A Snapshot

Revenue for the Group climbed by USD 178 million, marking a 1.9% increase year-on-year, reaching a first-half record of USD 9,675 million. This uptrend was powered by sustained demand across both Singapore Airlines and Scoot fleets, which collectively transported 20.8 million passengers—a rise of 8% compared to the prior year. Passenger load factor also saw a lift, ticking up by 1.3 percentage points to 87.7%, indicative of stronger traffic growth outpacing capacity expansions.

Challenges in Passenger Yield and Cargo

While passenger volumes grew impressively, passenger yields fell by 2.9% due to competitive pressures. The cargo segment remained sluggish, with flown revenue dipping by USD 31 million (or 2.8%) as yields declined 4.1% and cargo load factor slipped to 56.5%. This nuanced performance paints a picture of operational strength shadowed by freight market softness.

Cost Structure and Fuel Price Impact

Total expenditure edged up by 2% to USD 8,872 million. Non-fuel costs surged by 5.9%, a reflection of greater capacity and persistent inflation, while net fuel costs eased by 6.7%, driven by a 12.7% downturn in global fuel prices. Increased fuel consumption and transitioning from hedging gains to losses partially offset this relief.

Operating vs. Net Profit: A Contrasting Story

Despite a modest year-on-year increase in operating profit, net profit plummeted by nearly 68%, slipping USD 503 million to USD 239 million. This sharp decline was mainly driven by a USD 103 million fall in interest income and a significant USD 417 million reduction related to the Group’s share of losses from associated companies, particularly Air India after Vistara’s full merger in December 2024.

Financial Position and Shareholder Returns

As of September 30, 2025, the Group’s total shareholders’ equity stood firm at USD 15.5 billion. Notably, debt levels decreased by USD 2 billion, lowering the debt-to-equity ratio to a reasonable 0.70. Cash and bank balances were healthy at USD 6.4 billion, reflecting solid cash flow generation despite dividend payouts and debt repayments. Additionally, long-term fixed deposits totaled USD 2.1 billion, complemented by undrawn committed credit lines of USD 3.3 billion.

Fleet and Network Expansion

The SIA Group maintained a sizable fleet of 208 aircraft, with an order book of 67 more. Expansion strategies are targeting peak season demand through increased frequencies to key destinations and launching new routes, especially within South-East Asia – a region buzzing with travel growth.

Strategic Partnerships and Customer Experience Upgrades

The Group has pursued deepened regional partnerships and enhanced commercial ties, introducing refreshed codeshare agreements and customer loyalty program tweaks. Additionally, a revamped in-flight safety video is part of efforts to elevate passenger experience.

Dividend and Capital Return Plans

The company unveiled a multi-year capital return strategy featuring a special dividend of 10 cents per share annually over three financial years. For the current period, interim dividends were declared with a special 3 cents and a regular 5 cents per share payable in December 2025.

Outlook and Industry Drivers

Looking forward, the Group anticipates robust air travel demand during the year-end season, supported by carefully controlled capacity deployment. Cargo market volatility poses risks, with continued downward pressure on yields. Other external challenges include inflationary trends and supply chain hurdles. Nonetheless, the Group highlights its strong balance sheet alongside disciplined cost management, aiming to capitalize on its investments in network, product, and service excellence.

Connecting the Dots: What This Means for Taxi and Transfer Services

With SIA Group’s network expanding and air travel demand rising, airports and city hubs will likely experience higher passenger flows, inevitably increasing the need for reliable taxi e transfer services. Travelers keen on door-to-door convenience will turn to platforms like LocalsRide.com, which offers transparent car hire options, letting users choose exact vehicle types with clear info about drivers and fares. As airports get busier, having a trustworthy service to navigate the last mile smoothly becomes indispensable.

How LocalsRide Enhances Travel Planning

Unlike traditional booking aggregators, LocalsRide.com empowers passengers to browse detailed listings of vehicles—from private cars to limousines—with comprehensive ratings and real-time price comparisons. This transparency means users can secure a comfortable ride aligned with their budget and needs, reducing stress at the airport and throughout their city transfer.

Highlights and Considerations for Travelers

This first half performance by SIA Group underscores a resilient aviation sector recovering well amid operational challenges. Yet, no matter how glowing the reviews or how detailed the feedback, nothing beats firsthand experience. On LocalsRide, travelers can hire a car with driver from verified providers at reasonable prices, ensuring a smooth journey without unexpected costs or disappointments. The platform’s wide fleet options and additional services add convenience, affordability, and reliability—perfect for easing transfers and city rides after air travel. Book your Ride LocalsRide.com.

Looking Ahead: Industry Outlook and Travel Planning

While this update from the SIA Group may not dramatically reshape the global travel map, it is still a relevant signal in the evolving world of air transportation. LocalsRide stays attuned to such shifts, helping travelers maintain seamless mobility with trusted door-to-door services. Start planning your next adventure and secure your worldwide transfer with LocalsRide.

Sintesi

In essence, the SIA Group’s first-half results reveal a robust operating performance buoyed by increased passenger volumes and lower fuel expenses, offset by net earnings pressure from associate losses and interest income dips. The airline’s strategic focus on network growth and passenger experience aims to sustain its positive momentum amid ongoing cargo challenges and broader industry uncertainties. For modern travelers, this environment translates into busier airports and heightened demand for efficient taxi e private transfer services, where platforms like LocalsRide.com bring convenient, transparent and cost-effective solutions. From booking an exact car with a licensed driver to comparing competitive fares and choosing from a range of vehicle types, LocalsRide aligns perfectly with today’s travel needs, setting the stage for smoother journeys from airport to destination and around the city.