As other Asian carriers cut back amid fuel crisis, Singapore Airlines announces more flights

SINGAPORE: Unlike other carriers that have had to cut back due to surging fuel prices amid the backdrop of the war in the Middle East, Singapore Airlines announced on May 15 (Friday) that it will be increasing its flights.

There will be more SIA flights to Manchester, Milan, Munich, and London Gatwick in the second half of 2026, as well as a new flight route from Changi Airport to Madrid via Barcelona.

“We are in a position where we don’t need to cut capacity. I cannot comment on the other airlines, but our financial position is strong, and therefore, we are actually growing rather than cutting capacity,” Reuters quoted Lee Lik Hsin, Singapore Airlines Chief Commercial Officer, as saying.

The conflict in the Middle East, which began on Feb 28 when the United States and Israel started bombing Iran, resulted in the closure of the Strait of Hormuz, a chokepoint for around 20% of the world’s fuel supply. This has caused the price of oil to increase sharply, and jet fuel in particular has become more than twice as expensive in many regions.

Carriers such as Cathay Pacific and Qantas, which are among SIA’s main rivals, announced that they have decreased the number of flights they’re operating.

SIA, however, has shown a strong performance. In a statement issued on May 14, the carrier announced that its full-year operating profit had risen 39% to a record-breaking S$2.38 billion. Its revenue for the financial year that ended on March 31 was S$20.5 billion due to healthy demand for air travel, higher yields, and lower full-year net fuel cost. 

The carrier noted, however, that because Air India, which is jointly owned by SIA and the Tata Group, recorded a S$3.56 billion loss in 2025, its share of Air India’s loss amounted to S$945.2 million. According to its statement, year on year, SIA’s net profit dropped 57.4% S$1.18 billion.

The airline acknowledged that higher jet fuel prices had added significant cost pressure, noting that increased geopolitical tensions, including the war in the Middle East, are a major headwind for the industry as a whole.

“As the Group’s fuel bills are typically priced on a lagged basis, the impact is only partially reflected in March 2026. The full impact is expected to feed through in FY2026/27,” SIA noted, adding that even with the higher airfare prices that SIA and Scoot have implemented, this does not fully offset the rise in the price of jet fuel.

Jet fuel normally accounts for 30% of an airline’s operating costs.

“Depending on the duration and how the situation in the Middle East develops, there could be broader implications for supply chains and macroeconomic conditions affecting demand patterns,” SIA added.

“We want to price at a point that customers are still willing to buy, so we will have to watch the market carefully,” Mr Lee told Reuters and other media outlets. /TISG

Read also: SIA-backed Air India cuts international routes as Middle East conflict drives up fuel costs