Singapore Airlines posted net income of S$1.2bn ($927mn) for the year to March, beating analyst expectations as passenger numbers jumped 7.7 per cent to 42.4 million. The carrier capitalized on Middle East conflict disruptions, attracting travelers seeking direct Asia-Europe routes rather than Gulf connections that rivals were forced to abandon.

The Iran war created unexpected opportunities for Singapore's flag carrier, with competitors canceling flights and restricting services through affected airspace. While the airline benefits from this rerouting trend, rising jet fuel costs pose a significant challenge. The company warned that fuel expenses, typically priced on a lagged basis, will fully impact results by March 2026.

Despite strong operational performance, net profit declined 57 per cent year-over-year, primarily due to a $846mn impairment from its Air India investment. The struggling carrier, which suffered a fatal crash killing 260 people, contributed to Singapore Airlines' recent challenges. CEO Campbell Wilson resigned amid these headwinds, including supply chain constraints and airspace restrictions.

The airline raised fares to offset fuel costs, but acknowledged these increases fell short of covering higher expenses. With ongoing Middle East tensions and elevated fuel prices affecting the entire aviation sector, Singapore Airlines faces a delicate balance between capitalizing on current opportunities while managing mounting operational pressures.