Changi Airport handles 70.4 million passengers as revenue grows but profits dip

Changi Airport Group (CAG) has reported revenue of SGD 3.3 billion (US$2.5 billion) for the financial year ending March 31, 2026, a 6% increase from SGD 3.1 billion (US$2.4 billion) the previous year.

The growth was driven by higher passenger traffic and scheduled aeronautical pricing adjustments. Singapore’s Changi Airport (SIN) handled 70.4 million passengers during the year, up 2.9% from the previous period, though the company noted that concession performance remained muted as consumers spent more cautiously amid global economic uncertainty.

Revenue grew but profits fell as costs climbed faster

CAG’s net profit dropped 23% to SGD 648 million (US$505 million), down from SGD 841 million (US$656 million) the year before. A big part of that decline came from one-off items such as non-cash revaluation gains that boosted last year’s figures. Setting those aside, net profit fell by a more modest 10%, to SGD 618 million (US$482 million).

According to CAG, the main reason profits shrank despite higher revenue was a sharp rise in costs. Operating expenses jumped 14% to SGD 1.8 billion (US$1.4 billion), driven by the return of regulatory contributions and higher service fees that had been paused or reduced in earlier years. Without those, day-to-day operating costs rose by a more manageable 7%, reflecting inflation, pricier contract renewals, and spending in order to handle more passengers.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at SGD 1.4 billion (US$1.1 billion), slightly below the previous year’s SGD 1.5 billion (US$1.1 billion).

Keeping costs in check

CAG stressed that cost discipline remained a key priority. Energy-saving efforts implemented over the years have brought Changi Airport’s electricity consumption below pre-pandemic levels, helping to cushion the impact of rising fuel prices. The group also continued investing in technology, including the deployment of its first fully autonomous tractors for airside operations, as well as the scaling of an AI-driven system called Aircraft 360 to improve real-time ramp management and reduce departure delays.

Terminal 5 and infrastructure progress

On the infrastructure side, CAG made significant progress on the Changi East development following the groundbreaking for Terminal 5 last year. Major civil infrastructure works entered the execution phase, with contracts awarded for substructure work, intra-terminal tunnels, and airside infrastructure. Other ongoing projects include a Terminal 3 refurbishment, Skytrain renewal and baggage handling system upgrades.

The group’s financial position has remained solid. Cash and cash equivalents stood at SGD 1.9 billion (US$1.5 billion) as of March 31, 2026, while loans and borrowings were at SGD 1.9 billion (US$1.4 billion). Total equity attributable to the shareholder grew 5%, to SGD 7.7 billion (US$6.0 billion).

CEO signals focus on financial discipline as headwinds persist

CAG CEO Yam Kum Weng noted that the operating environment is expected to remain challenging, with geopolitical tensions disrupting air traffic flows and inflation keeping costs elevated.

“The Group will stay focused on strengthening Changi’s connectivity and delivering Terminal 5 as well as other major infrastructure projects, while exercising financial discipline,” he said. “At the same time, we will continue to invest in innovation to enhance our operational resilience and create long-term value.”

Changi Airport currently connects Singapore to around 170 cities worldwide, with close to 100 airlines operating a total of more than 7,300 flights each week.

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Changi Airport handles 70.4 million passengers as revenue grows but profits dip

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