Singapore Airlines faces tough year ahead
Lower passenger yields, higher fuel prices and long-recovering air freight demand will blunt its whole-year prospects, says OCBC.
What else can we expect from the struggling airlines for the rest of fiscal year 2013?
Here's more from OCBC:
For the year ahead, management guided that capacities of the parent airline, SIA Cargo and SilkAir will increase by 3%, 3% and 22% respectively. Capex in FY13 is budgeted to be ~S$1.6b. Advance bookings in the current quarter are higher YoY but air travel in 1QFY12 was notably disrupted by last year’s earthquake in Japan. Passenger yields will likely come under further pressure though fuel prices are expected to remain high. Demand for air freight is unlikely recover before 2HFY12.