Thursday, January 26, 2012


SIA: UOB Kay Hian has earnings preview. House expect a 72% yoy decline in 3Q12. SIA will report 3Q12 results on 3Feb. At the group level, house expect net profit -31% qoq and -53% yoy to $135m, excluding exceptional items. Group operating profit is expected to decline 80% yoy and 16% qoq, primarily due to expectations of lower operating profit for the parent airline on the back of lower load factors
(-2.5ppt) and higher jet fuel prices (+27%).

Pax yields are expected to show qoq growth due to seasonality and a weaker SGD. However, think growth will be moderate at 0.9% as data from IATA indicate that premium traffic grew just 0.1% in Oct, the slowest growth since Mar 10. This could impact yields from the front-end for SIA. Overall, house maintains Hold with $10.90 TP.

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