News related to
aviation venture

The Singapore flag carrier reported net profit of S$1.18 billion for the year ended March 31, down 57.4 per cent from the previous year. Operating profit, by contrast, rose 39 per cent to S$2.38 billion, helped by robust passenger demand, higher yields and stronger traffic across Singapore Airlines and Scoot. Group revenue reached a record S$20.52 billion, up 5 per cent, while the two carriers carried 42.4 million passengers, a 7.7 per cent increase from the year before.

The headline profit decline was driven largely by two accounting and investment factors. Singapore Airlines no longer benefited from the S$1.1 billion non-cash gain recognised after the completion of the Air India-Vistara merger in November 2024. At the same time, its share of associated-company results swung into a large loss as it accounted for a full year of Air India’s losses rather than only four months in the previous reporting period.

Air India recorded a US$2.8 billion loss for FY2025/26, its largest since Tata Group took control of the carrier in 2022. Singapore Airlines owns 25.1 per cent of the Air India Group after Vistara, its former joint venture with Tata Sons, was merged into Air India. The investment remains central to SIA’s wider multi-hub strategy, giving the carrier exposure to one of the world’s fastest-growing aviation markets.

The losses underline the scale of Air India’s turnaround challenge. The airline is renewing its fleet, refurbishing aircraft interiors, upgrading service standards and trying to rebuild operational reliability after years of under-investment. Those efforts are being tested by supply-chain constraints, limited aircraft availability, airspace restrictions, constraints on services to key Middle East markets and elevated fuel prices.

The Iran war has added another layer of pressure for long-haul operators. The closure of the Strait of Hormuz after the outbreak of the US-Israel war on Iran in late February pushed jet-fuel prices higher and widened the gap between aviation fuel and crude oil costs. Singapore Airlines said the impact was only partly reflected in March because fuel bills are priced with a lag, with the full effect expected to feed through in FY2026/27.

Higher fuel prices are particularly damaging for airlines because fuel is the sector’s largest variable cost and is difficult to offset quickly. SIA and Scoot have raised fares across their networks, but those increases do not fully cover the higher price of jet fuel. The group’s fuel hedging provided some protection during the year, while average full-year fuel prices were lower than the previous year, but the cost outlook has become more demanding.

Airspace restrictions have also reshaped competitive dynamics on routes linking South Asia, Europe and North America. Air India has been exposed because its network relies heavily on long-haul flights that are sensitive to rerouting, longer flying times and crew-scheduling limits. Foreign carriers including Lufthansa Group, Cathay Pacific, KLM and Swiss have gained room to expand India-linked international services as Air India manages disruption and cost pressure.

For Singapore Airlines, the underlying operating figures still show resilience. Passenger load factor rose to 87.7 per cent, with traffic growth of 4.7 per cent outpacing capacity expansion of 3.4 per cent. Passenger yields rose 1 per cent, while cargo revenue declined 2.1 per cent to S$2.17 billion as weaker yields offset higher loads.

Rumah FABA Kreasi Muda serves as a production facility for concrete blocks and paving stones using Fly Ash and Bottom Ash (FABA) – non-hazardous by-products generated from Apical’s power plant – as alternative raw materials. These materials are processed into construction products that can support infrastructure development in the surrounding community.

In his remarks, PT SDO Head of General Affairs, M. Jaya Budi Arsa, said the initiative was introduced to strengthen economic independence in communities around the company’s operational areas. “We established Rumah FABA Kreasi Muda to create new business opportunities and support the economic independence of nearby communities. We hope this facility will help enhance residents’ skills and capacity to run sustainable businesses,” he said.

To support the programme’s implementation, Apical, a member of the RGE group of companies founded by Sukanto Tanoto, has provided assistance through the construction of the production facility, the supply of equipment and the provision of a steady supply of FABA as an alternative raw material. This support is intended to enable the community to carry out production in a structured manner while gradually developing independently managed businesses.

Lubuk Gaung Subdistrict Head Syafrianto, S.Sos., M.IP., noted that the Rumah FABA initiative has had a direct impact on youth engagement and local economic development. He also emphasised the importance of continued guidance to ensure the business can grow sustainably.

“Rumah FABA provides space for young people in Lubuk Gaung to take part in productive activities and access new job opportunities. Moving forward, ongoing support will be key to ensuring the business continues to grow and deliver long-term benefits,” he said.

Rumah FABA Kreasi Muda is expected not only to create employment opportunities but also to strengthen the community’s capacity to manage businesses independently. By repurposing available materials, the programme generates added value while promoting resource efficiency.

In line with Apical’s 5Cs business philosophy – doing what is good for Community, Country, Climate and Customer, and only then will it be good for the Company – the company aims to ensure that its operations deliver balanced benefits for society, the environment and long-term business sustainability.
Hashtag: #RGE #Apical #Palm #CommunityEmpowerment #Indonesia

https://www.apicalgroup.com

The issuer is solely responsible for the content of this announcement.

About Apical

Apical is a leading vegetable oil processor with an expanding global footprint. Our vertically integrated mid-stream refining and value-added downstream processing makes us an integral supplier that supports the needs of various industries namely food, feed, oleochemicals and renewable fuel, including sustainable aviation fuel (SAF) which enables a great reduction of CO2 emissions.

With integrated assets in strategic locations spanning Indonesia, China and Spain, Apical operates numerous refineries, oleochemical plants, renewable fuel plants and kernel crushing plants. Through joint ventures and strategic partnerships, Apical also has processing and distribution operations in Brazil, India, Pakistan, Philippines, Middle East, Africa, USA and Vietnam.

Apical’s growth is built on the foundations of sustainability and transparency, and motivated by our strong belief that we can contribute to a circular economy for a more meaningful impact, even as we continue to grow our business and deliver innovative solutions to our customers.

The initiative was launched on 15 December 2025 at the RW 03, RW 09 and RW 10 community offices within the Cilincing public housing complex. Targeting women of reproductive age, the programme was designed as a preventive effort to raise awareness and improve access to essential health services, particularly reproductive health, as a foundation for healthy families and future generations.

Apical’s CSR Manager, Sugiantoro, said the collaboration reflects the company’s long-term, preventive approach to public health. “We believe that healthy women are the pillars of strong families and a key force in shaping healthy communities. Through PT AAJ’s involvement, we aim to create tangible impact by prioritising early prevention, rather than focusing solely on treatment,” he said.

A key focus of the initiative was the early detection of cervical cancer, a serious but largely preventable disease when identified through routine screening and timely intervention. Services provided included IVA screening (visual inspection with acetic acid) and HPV (human papillomavirus) testing.

Dr Kezia Ivana from the Cilincing Community Health Centre explained that IVA and HPV screenings are effective methods for detecting cervical cancer at an early stage.

“Early detection allows us to identify the virus that causes cervical cancer sooner, significantly reducing the risk of disease progression. When detected early, the chances of recovery are very high. However, if left undetected, cervical cancer can lead to severe pain, abnormal bleeding, kidney and urinary tract disorders, swelling of the legs, and fertility problems that may prevent women from having children,” she said.

Apical’s participation in this initiative aligns with the company’s 5Cs philosophy that whatever it does must be good for the Community, Country, Climate and Customer, and only then will it be good for the Company, which underpins its commitment to inclusive and sustainable growth. Through partnerships with local stakeholders, Apical, a member of the RGE group of companies founded by Sukanto Tanoto, continues to support government efforts to address stunting while contributing to improved social and women’s health outcomes, particularly in communities surrounding its operational areas.
Hashtag: #RGE #Apical #CSR #Stunting #Indonesia #Women #Health #Communities

https://www.apicalgroup.com

The issuer is solely responsible for the content of this announcement.

About Apical

Apical is a leading vegetable oil processor with an expanding global footprint. Our vertically integrated mid-stream refining and value-added downstream processing makes us an integral supplier that supports the needs of various industries namely food, feed, oleochemicals and renewable fuel, including sustainable aviation fuel (SAF) which enables a great reduction of CO2 emissions.

With integrated assets in strategic locations spanning Indonesia, China and Spain, Apical operates numerous refineries, oleochemical plants, renewable fuel plants and kernel crushing plants. Through joint ventures and strategic partnerships, Apical also has processing and distribution operations in Brazil, India, Pakistan, Philippines, Middle East, Africa, USA and Vietnam.

Apical’s growth is built on the foundations of sustainability and transparency, and motivated by our strong belief that we can contribute to a circular economy for a more meaningful impact, even as we continue to grow our business and deliver innovative solutions to our customers.

A new specialised laboratory for testing and certifying sustainable aviation fuel is being set up in Fujairah, marking a significant expansion of the UAE’s ambitions to become a leading hub for low-carbon aviation fuels across the Middle East and North Africa. The project, developed by MENA Biofuels in partnership with Saybolt, is positioned as the first facility of its kind in the country dedicated to sustainable aviation fuel testing and is expected to strengthen the supply chain for carriers adopting cleaner fuel blends.

The laboratory will be located within the Fujairah Oil Industry Zone, one of the region’s key energy storage and logistics centres. According to the developers, the facility will operate under internationally recognised standards and provide independent verification and certification services for SAF produced in the UAE and the wider region. This will allow aviation fuel suppliers to meet the stringent quality and sustainability benchmarks required by global regulators and airlines, many of which are targeting large-scale SAF adoption over the coming decade.

MENA Biofuels and Saybolt have indicated that the lab is being designed to serve both domestic producers and international clients moving fuel through Fujairah’s terminals. Industry analysts note that Fujairah’s strategic location on the global maritime route linking the Gulf to Asia and Europe gives the new testing operation considerable potential to influence regional fuel flows. The developers said the initiative reflects growing demand among airlines for certified SAF, which is viewed as one of the most immediate pathways to reducing aviation emissions.

The UAE has been expanding investments in biofuels as part of its broader decarbonisation strategy, with several aviation stakeholders stepping up procurement of SAF blends for commercial flights. Etihad Airways and Emirates have both trialled SAF operations, while Abu Dhabi and Dubai authorities have emphasised the need for stronger regional production capacity. Industry data indicates that SAF supply remains constrained worldwide, making certification infrastructure a critical component for scaling up output. The new Fujairah lab aims to close a gap in regional capabilities by offering end-to-end testing that aligns with international requirements established by organisations such as ASTM International, which governs SAF specifications.

Saybolt, an inspection and testing group with long-standing operations in global energy markets, is expected to lead the technical management of the laboratory. Its role will involve implementing fuel-testing protocols, quality assurance systems and sustainability verification frameworks. Executives familiar with the arrangement said the partnership combines Saybolt’s technical expertise with MENA Biofuels’ regional network and logistics access. Market observers believe this gives the venture a strong foundation to support both emerging SAF producers and established energy companies evaluating diversification into aviation biofuels.

The decision to anchor the lab within the Fujairah Oil Industry Zone aligns with local authorities’ push to broaden the zone’s portfolio beyond crude and refined products. The zone already hosts significant tank storage, bunkering and refining infrastructure, and expanding into sustainable fuels aligns with the UAE’s national energy transition commitments. Investors and analysts have pointed to Fujairah’s ability to handle large volumes of fuel as an advantage for SAF certification, particularly for producers that require rapid turnaround on testing to meet airline delivery schedules.

Aviation industry figures have highlighted that the move addresses a structural bottleneck in the SAF market. Certification processes are often conducted in Europe or the United States, adding cost and delay for producers operating in the Gulf. By offering testing capacity locally, the Fujairah lab is expected to reduce lead times and encourage investment in regional SAF manufacturing. Some analysts say the initiative may draw interest from energy companies in neighbouring Gulf states exploring SAF pathways as part of their decarbonisation agendas.

Airline industry targets have accelerated demand for SAF, with global carriers collectively aiming for significant emissions reductions by 2030. Several Gulf-based airlines, including those operating through Abu Dhabi, Dubai and Sharjah, have pledged to expand their use of sustainable fuel blends once supply becomes more stable. SAF production in the region remains at an early stage, but energy firms have been evaluating waste-to-fuel pathways, renewable feedstocks and partnerships with technology providers to scale output. The establishment of credible certification capacity is viewed as an essential precursor to commercial production.

Saudi entities Hassana Investment Company and AviLease have formed a joint venture to offer aircraft-leasing opportunities, signalling a major step in the Kingdom’s drive to build up its aviation financing infrastructure under its National Aviation Strategy. Hassana will own a majority of the new venture; AviLease—backed by the Public Investment Fund—will supply aircraft servicing.

The joint venture’s launch includes a deal to acquire a fleet of ten fuel-efficient, new-technology aircraft from AviLease, all currently leased to carriers based in Saudi Arabia. The portfolio reflects a shift towards greener, more sustainable aviation assets.

Hassana, which manages funds for the General Organization for Social Insurance, sees this as a chance to deepen exposure to resilient asset classes that generate long-term cash flows. Hani Al-Jeha­ni, Acting CEO and CIO of Hassana, emphasised the partnership aligns with its mandate to pursue investments that offer sustainable returns while supporting national aviation goals.

AviLease, established in 2022 as part of the sovereign wealth fund’s expanding portfolio, is expanding rapidly. The company has placed large orders for new Boeing and Airbus aircraft and completed a sizeable financing facility earlier this year. It manages a global portfolio worth several billion dollars. Edward O’Byrne, CEO of AviLease, described the joint venture as foundational to scaling up Saudi Arabia’s aviation ecosystem and creating a platform attractive to both domestic and international investors.

Fahad Al-Saif, Chairman of AviLease, noted that the partnership marks one of the first private-sector-led steps into the aviation financing domain within Saudi Arabia, reinforcing the role of investment institutions in strengthening the sector.

The move supports Saudi Arabia’s ambition to draw 150 million visitors annually by 2030, up from earlier targets, and to enhance the economic multiplier effects of tourism, trade, and transport infrastructure. Aviation financing is seen as a key enabler in achieving these goals, since airlines often face high capital costs.