However, airfare and yield increases certainly do not cover the increase in fuel costs, which are in yet another volatile period amid the fighting between the US and Iran. With elevated oil prices, the airline’s hedging skills once again deserve closer examination.
Singapore Airlines (SIA), the “world’s favourite airline”, reported operating profit in FY2026 ended March rose to $2.375 billion, up 29% y-o-y, with 2HFY2026 operating profit at a record $1.572 billion, up 72% y-o-y. Operating profit margin for the full year was 11.57%, and in 2HFY2026 it rose to 14.5%.
According to Bloomberg data, analysts have lowered their forecasts for SIA’s operating profit and net profit by 6.6% and 17.2%, respectively, to $1.885 billion and $1.01 billion. At the airline’s results briefing on May 15, CEO Goh Choon Phong points out that SIA does expect “some degree” of yield growth.
