Singapore Airlines, the national carrier of Singapore, reported a 57.4% decrease in its full-year net profit on Thursday, May 14, 2016. The decline was attributed to the ongoing impact of higher fuel costs, which have been exacerbated by the closure of the Strait of Hormuz and the surge in jet fuel prices.
People pass a Singapore Airlines signage at Changi Airport in Singapore on May 11, 2016. Singapore Airlines posted a 57.4 per cent drop in full-year net profit on Thursday , warning that higher fuel costs were still filtering through and would weigh more fully in the year ahead.
The closure of the Strait of Hormuz following the outbreak of the US-Israeli war on Iran in late February has sent jet fuel prices surging far beyond the rise in crude prices, compounding cost pressures across the global aviation industry. The impact on expenditure was only partially reflected in March 2026, as the group's fuel bills are typically priced on a lagged basis, Singapore's flag carrier said.
"While SIA and Scoot have raised air fares across their network, the adjustments do not fully offset the rise in the price of jet fuel, which is the group's single-largest expenditure item," it said. The company's net profit of $1.18 billion came in above Visible Alpha's consensus estimate of $1.08 billion. Last year, it booked a one-time gain of $1.1 billion from the full integration of its Vistara joint venture into Air India.
Singapore Airlines Net Profit Fuel Costs Strait Of Hormuz Jet Fuel Prices Air Fares Vistara Air India Integration Consensus Estimate
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