Singapore Airlines reported a mixed set of results for its airfreight operations in the first quarter of the 2025/26 financial year, with overall cargo demand remaining resilient but yields continuing to face downward pressure.
According to the group’s latest financial disclosure, airfreight revenue dipped slightly by US$10 million, a 1.9 percent fall compared to the same period last year. This was attributed primarily to a 4.4 percent decline in cargo yield, which slipped to 34.5 cents per tonne-kilometre. While cargo volumes improved, the rate at which capacity grew outpaced demand, pushing load factors down marginally.
In the three months ending 30 June, SIA carried 289.4 million kilograms of cargo and mail, up 5.7 percent year-on-year. However, the cargo load factor dropped by 0.8 percentage points to 56.9 percent. This slight dip was a result of a 4.2 percent increase in available capacity, compared to a 2.8 percent growth in actual cargo load.
Despite this, the airline managed to reduce its cargo unit cost by 1.5 percent, bringing it down to 19.8 cents per tonne-kilometre. The cargo breakeven load factor, however, rose to 57.4 percent — higher than the actual load factor, suggesting profitability pressures continue in this segment.
SIA currently operates a dedicated freighter fleet of seven aircraft, supporting a cargo network that spans 133 destinations across 38 countries and territories. The group’s diversified approach and global reach have helped buffer some of the volatility seen in specific markets, particularly as global trade faces headwinds from ongoing tariffs and shifting geopolitical conditions.
In its outlook, the airline acknowledged the challenges ahead, noting that “ongoing tariffs have led to unpredictable and uncertain demand” in the cargo space. Nonetheless, SIA remains confident in its ability to respond with agility. “The group’s diversified network and verticals reduce its exposure to specific regions or market segments, and it will continue to adapt its capacity and seize opportunities as they arise,” the report stated.
While the airfreight side of the business saw some softening, it was not all gloom. SIA pointed to its strong balance sheet, with shareholder equity rising to US$15.8 billion and cash reserves still robust at US$7.8 billion. The airline also emphasised its continued investment in sustainable aviation fuel (SAF) and digital capabilities as part of a longer-term strategy to remain competitive.
