Singapore Airlines is expanding long-haul flights to Europe to capture traffic from Gulf rivals, leveraging a strong financial position and fuel hedging strategy amidst industry challenges.

As high fuel prices and disruption from the Middle East conflict force many Asian carriers to cut capacity and rearrange routes, Singapore Airlines (SIA) is moving in the opposite direction: adding long-haul flights to Europe in a bid to capture traffic from its Gulf rivals. Aviation analysts said the carrier’s expansion reflected a rare combination in the region: a strong balance sheet, insulation from sudden jumps in fuel prices due to its hedging strategy and a hub in Singapore that could...