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.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

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