SIA

SIA: Operating results for July 2012. Co recorded 3.2% yoy growth in passenger carriage while capacity increased by 4.7%. Load factor fell by 1.1% pts to 80.5%. Number of passengers increased by 2.7% yoy. Load factors fell across all regions except Americas which saw strong travel demand. Cargo traffic was also 3.0% lower yoy while cargo capacity decreased by 0.1%. This caused load factors to fall yoy for all regions except for South West Pacific and West Asia & Africa with total decline at 8.1% pts. SilkAir’s systemwide passenger carriage increased 24.0% year-on-year against 24.5% growth in capacity. As a result, PLF was 0.3 of a percentage point lower at 75.0% pts Co currently trades at P/B of 1.0x and peer Cathay Airways at approx 0.9x P/B