SIA

SIA: Nov operating stats were a mixed bag. - SIA pax load factor improved to 77.7% (+2.5 ppts), but is still below historical break even levels of ~80%. Promotional activities and a challenging operating environment continued to be cited as a likely source of downward pressure on passenger yields. - SilkAir’s yoy dip in load factor to 74.4% (-4.6%) however can be attributed to aggressive capacity growth (+19.1%), in line with the group’s push for shorter haul regional expansion. - Cargo load factor remained weak at 66.1%, despite the cut in capacity (-11.4%). Maybank KE maintains its Hold rating with TP $10.50, pegged to 0.9x FYMar14 P/B, citing challenging operating outlook.