Here’s what’s keeping SIA afloat despite turbulent yields

Passenger load factor fell to 73.6% in May.

Singapore’s flag carrier is experiencing a rough patch in terms of yields, with capacity growth of 2.9% outpacing its 1.8% traffic growth.

However, according to analysts from OCBC, the weak yields environment is being offset by savings brought about by cheaper fuel.

“Operating in weak yields environment, we expect SIA’s FY17F earnings to be driven by much lower hedging losses and higher fuel savings from new aircraft being delivered over the year, offsetting lower yields,” OCBC said.

Additionally, Singapore Airlines can also draw positive news from its sister airlines SilkAir and Scoot, which continued to show growth momentum.

“SilkAir’s posted solid performance as passenger loads for May 16 grew 16.7% YoY, which exceeded capacity growth of 15.1% resulting in a 0.9ppt improvement in PLF to 69.5%.

Another positive came from Scoot as it continued its strong growth momentum as May 16 passenger loads jumped 56.9% YoY but outpaced by capacity growth of 60.1% as number of aircraft increased from six to eleven,” OCBC said.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia