Singapore Airlines posts S$76M loss as fuel costs, Air India weigh

Singapore Airlines reported a net loss of S$76 million in the first quarter, its first deficit since the pandemic, as soaring jet fuel costs and widening losses from Air India dragged down earnings.

"The operating environment remains challenging, with elevated fuel prices and competitive pressures across key markets," the carrier said in its earnings statement.

The loss for the three months ended June 30 compared with a profit of S$186 million a year earlier. Revenue rose, though the company did not disclose the exact figure. The result missed the LSEG consensus estimate for a loss of S$4.3 million by a wide margin.

The deficit marks a sharp reversal for the flag carrier, which had benefited from a post-pandemic travel boom. Soaring jet fuel prices tied to the Middle East conflict and a higher share of losses from its associate Air India weighed on earnings.

The airline's fuel costs rose as the conflict in the Middle East pushed up jet fuel prices globally. Singapore Airlines also took a larger share of losses from Air India, in which it holds a 25 percent stake, as the Indian carrier continues its turnaround under Tata Group ownership.

The S$76 million loss is the first quarterly deficit for Singapore Airlines since the COVID-19 pandemic ended in 2022. The carrier had posted consistent profits through the travel recovery, benefiting from strong demand for premium travel and its extensive network across Asia and Europe.

The loss signals that even well-capitalized carriers are not immune to the dual pressures of geopolitical risk and associate exposure. Investors will watch Singapore Airlines' second-quarter results in October for signs of whether fuel costs have moderated and whether Air India's restructuring is gaining traction.

This article is for informational purposes only and does not constitute investment advice.