Pax yield can rise by 2.7% in the second half of 2018.
The International Air Transport Association (IATA) projects that Asia Pacific carriers' capacity growth will dip 6.8% in 2018. According to analysts from UOB Kay Hian, this can be conducive to pax yield growth amongst carriers like Singapore Airlines (SIA). Pax yield for SIA is projected to rise by 2.7% in the second half of 2018 and by 1.6% in 2019
Amongst other carriers, there are already signs of stronger pax yield growth with several North Asian carriers registering over 5% growth in 4Q17.
According to UOB Kay Hian analyst K Ajith, "We believe that markets have yet to price this positive inflexion point. We expect SIA’s yields to similarly improve in 3QFY18 and expect a favourable yield environment for 2018."
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