- SIA's share price gained 1.8% in Jan 2024, ahead of its 3QFY24 earnings report to be announced on 20 Feb.
- Passenger volume in the seasonally strong quarter rose 19% y-o-y, slower than 2Q24’s +29% growth. SIA's passenger load factor in Dec fell 0.3% y-o-y, the first decline since Sep 2021. This could lead to lower fares to fill seats.
- - Read this at SGinvestors.io -
- We expect travel demand to ease after the Dec peak quarter. Cargo recovery is clouded by weaker economic conditions and lower manufacturing output from Asia.
- We are UNDERWEIGHT on air transportation sector.
Market Review
Passenger load factor slipped 0.3% point y-o-y in December
- SIA's passenger load factor slipped 0.3% point y-o-y in December, the first decline since Sep 2021, pointing to peaking air travel demand. The biggest decline was on the South-West Pacific route (-3.1 ppt). European routes fell for the 8th consecutive month. Passenger seat-km was just 4.8% below Dec 19’s level.
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Brief capacity reduction from the grounding of B737 Max 9 planes.
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Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Peggy Mak Phillip Securities Research | https://www.stocksbnb.com/ 2024-02-01
