Airlines / SIA

Airlines / SIA: Cathay Pacific, the world's largest international air cargo carrier, is 'very worried' about the fourth quarter because of a freight slowdown. Says, the industry is unlikely to see a traditional end-of-year traffic jump as demand cools, particularly in Europe.
The International Air Transport Association (IATA) last week cut its forecast for expansion in global cargo volumes this year to 1.4% as waning growth in the US and Europe damps demand for shipments of electronics and fresh foods. Cautioned that the slowdown may contribute to Asia-Pacific airlines' profits falling 69% this year to US$2.5b.
SIA, which accounts for 12% of segment profit from cargo, is likely to be similarly affected as well. This, coupled with rising competition from the budget carriers for its passengers, means outlook for SIA is likely to be challenging.
The Street has mixed ratings on SIA, with wide range of recent TP btwn $10-18.25.