Airlines/SIA/Tiger: Sector could see some weakness after IATA halved profit forecast for industry to US$4b in 2011 vs US$18b in 2010 due to Mar 11 tsunami in Jap, unrest in MENA and biggest culprit being high oil prices. Revised profit outlook down sharply from previous estimate of US$8.6b made in early Mar. Fuel is now estimated to comprise 30% of airline costs vs 13% in 2001. IATA expects robust growth in India and China to provide underlying support to the region's carriers…..
Separately, SIA announced that it has formed an alliance with Virgin Aus under a deal which will allow the 2 airlines to sell tickets and seats on each other's international and domestic flights, which could path way for further alliances with other carriers, as SIA seek other avenues to increase sales and load factors, in a challenged industry outlook for FY11.
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