SIA

SIA: Despite a pick-up in passengers carried in Jul, overall load factor dipped 0.4 pt to 70.2% as capacity grew 5.5% against a 4.5% increase in passenger traffic. This led to a 0.8 ppt decline in the pax load factor to 81.6%, mainly on the Americas region where demand was outpaced by the additional capacity. Cargo traffic improved 2.2% lifting its load factor by 1 ppt to 65%. Cargo load factors rose for all sectors except East Asia.

Following the recent 24% descent in its share price, valuation for SIA is starting to look attractive again. At $11.18, the carrier is trading at a current P/B of 0.94x, which is below the average historical low of 1.0x. This also compares to the P/B valuations of 0.5x & 0.8x experienced during the worst of the 1998/99 Asian financial crisis & the 2008/09 global financial storm respectively.