Singapore Air Transport Sector - Phillip Securities 2024-02-01: Peaking Travel Demand

Singapore Air Transport Sector - Peaking Travel Demand

SIA (SGX:C6L) | SGinvestors.ioSIA (SGX:C6L) SATS LTD. (SGX:S58)
  • 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.
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  • 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 @

Peggy Mak Phillip Securities Research | 2024-02-01


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