SIA reaches 88% of pre-pandemic passenger load as Chinese visitor increases

It was also spurred by Singapore's visa-free arrangement.

Singapore Airlines (SIA SP) has achieved a passenger load of 88% of pre-pandemic levels, surpassing projections by 4.3% on 24 February, according to UOB Kay Hian.

This was driven by a robust passenger load factor of 86.3%, boosted by a visa-free arrangement for Chinese travelers effective 9 February. 

Additionally, passenger capacity stood at 86.2% of pre-pandemic levels, in line with forecasts.

SIA also exceeded cargo load projections by 6.8% on 24 February, attributed to strong e-commerce demand.

Cargo load factors reached 56.7% despite the traditionally slow February season. Cargo capacity and load stood at 95.3% and 97.9% of pre-pandemic levels, respectively.

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SIA's passenger network covered 121 destinations, remaining stable compared to pre-pandemic levels.

Moreover, UOB Kay Hian forecasts SIA's net profit for the fourth quarter of FY24 at $553m, with a full-year net profit for FY24 expected to reach $2.66b.
Projections account for a 1% quarter-on-quarter (QoQ) moderation in passenger yields, a 10% QoQ decline in cargo yields, and a 10% QoQ decrease in jet fuel cost per barrel.

The earnings estimates provided do not incorporate a non-cash accounting gain of $1.11b from the potential deemed disposal of Vistara, part of the proposed merger between Vistara and Air India, the report noted.