SIA

SIA: RPK increased 2.5% on the back of 4.4% growth in ASK. Consequently, passenger load factor (PLF) decreased by 1.5 ppts to 81.5%. The number of passengers carried increased by 2.7% to 1.6m. Load factors were lower across all regions except for East Asia and the Americas. South West Pacific route region registered the highest PLF decline, as capacity expansion outpaced the growth in passenger carriage. The operating environment remains challenging. Efforts to stimulate demand to boost loads are expected to place continued downward pressure on yields. SilkAir’s systemwide passenger carriage increased 8.9% y/y against a 17.1% growth in capacity. As a result, PLF was 5.5 ppts lower at 73.2%. Overall cargo traffic was 6.3% lower y/y, while cargo capacity decreased by 5.6%. Consequently, cargo load factor decreased by 0.5 ppts. Load factors were lower for all route regions except East Asia and Europe, as capacity changes were more closely matched with demand. SIA currently trades at 0.92x P/B.