\n<\/p>\n
SIA was also asked about possible further airfare hikes in response to fuel cost pressures from the Middle East crisis. Executives remained non-committal, saying that \u201cairfares are a function of supply and demand\u201d.<\/p>\n
\u201cWe want to price at a point that customers are still willing to buy, so we will have to watch the market carefully,\u201d said chief commercial officer Lee Lik Hsin.<\/p>\n
The group has said fare adjustments across SIA and Scoot’s networks do not fully offset the rise in jet fuel costs \u2013 its single largest expense. Its FY2025\/2026 results capture only one month of fallout from the crisis, which flared up on Feb 28. The full impact is expected to feed through to FY2026\/2027.<\/p>\n
SIA on Thursday reported a 57.4 per cent drop in annual profit to S$1.18 billion for FY2025\/2026.<\/p>\n
The decline was largely driven by the absence of a S$1.1 billion one-time gain from the Vistara integration recorded in the year-ago period, compounded by losses from Air India.<\/p>\n
On fuel supply, chief operations officer Tan Kai Ping said supply is stable across the network in the near term, but that there is no long-term visibility given the “very volatile” situation.<\/p>\n
\u201cThe first thing that will happen when fuel supply runs short will be fuel rationing at airports,\u201d he said, noting that this is not the case now.<\/p>\n
Mr Goh said SIA has taken a different approach from other airlines that have cut capacity since the Middle East conflict began.<\/p>\n
It has cut services to Dubai and postponed the launch of services to Jeddah, but announced additional capacity and frequency on other routes \u2013 \u00a0particularly in Europe, where its network has grown around 13 per cent compared to before the start of the war against Iran.<\/p>\n
\u201cWe are in a position where we don\u2019t need to cut capacity,\u201d said CCO Mr Lee. \u201cOur financial position is strong, and therefore we are actually growing rather than cutting capacity.\u201d<\/p>\n<\/div>\n