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Aircraft fuel expenses ~ 36% of revenue for QR1 ended 31/3 and global crude oil only spiked up in March 2026 after the Middle East conflicts (ie. 1 month impact only). What will be the impact in Q2 ending 30/6/2026 since AAX has Zero jet fuel hedging policy and jet fuel is already ~ 2-2.5x Pre Middle East conflicts at present and might even head higher ? In addition, all the advance ticket sales as at 31/3/2026 (flying in Q2) will be without the fuel surcharges and fares increase.
Advance ticket sales cannot impose price increases and additional fuel surcharges in April 2026 when jet fuel prices were exorbitantly high in April 2026. May and June 2026 can be mitigated via ticket price increases and fuel surcharges but with demand trade off ie. grounded aircrafts (where necessary). Q2 ending 30 June 2026 performance expected to be ugly as we are already in mid May 2026 and Middle East conflict remains protracted (global high crude oil prices and energy crisis still unresolved).
“Singapore Airlines (SIA) posted a 57.4 per cent drop in full-year net profit on Thursday (May 14), warning that higher fuel costs were still filtering through and would weigh more fully in the months ahead.” SIA has a prudent 40%-50% jet fuel hedging policy.