SIA

SIA: Operating figures for Dec out. Passenger carriage and cargo traffic generally increased although load factors fell due to capacity increases. Of note America saw a rise both in both passenger and cargo load factors.

Co recorded 1.8% yoy growth in passenger carriage while capacity grew by 3.2%. As a result, passenger load factor declined 1.1% points to 79.6%. The number of passengers carried increased by 1.3% over the same period the previous year.

All regions except Americas registered lower passenger load factors (PLFs) over the same month the year earlier. East Asia PLF due to capacity increases and the flood situation in Thailand also continued to affect demand. The improvement in Americas region's PLF was a result of strong year-end travel demand.

For SilkAir, carriage +7.6% yoy against 9.3% growth in capacity. As a result, PLF declined 1.4% points to 83.1%. PLF on West Asia routes rose as market conditions remained buoyant in SilkAir's India points. The PLF for East Asia routes due to capacity.

Overall cargo traffic +1.5%, cargo capacity +1.3%.Load factor in Dec 2011 rose by 0.1% point. Cargo load factor for Europe and the Americas increased, while other route regions registered lower load factors.

JPM is of view Dec performance was better than normal seasonality and maintains Overweight with TP$15.50. House highlights net cash of 40% mkt cap with div yield of 5-11% over nxt 3 yrs and at 0.9x P/B (trough 0.7x during prev crisis) as supporting pts.

Citi maintains Sell with TP $10.40. DMG maintain Buy with TP$12.37