- Singapore Airlines (SIA)'s 3QFY24 operating profit fell 19.3% y-o-y to S$609mil, as yield decline and inflationary cost pressure (+9.3%) offset strong passenger traffic (+19.1%) and cargo load (+3.9%).
- - Read this at SGinvestors.io -
- SIA's 9MFY24 net profit of S$2.1bn is above our FY24e forecast. We raise our FY24e net profit forecast for SIA by 10.5%, as passenger load factors are coming in above our earlier assumptions. However, 4QFY24e earnings is expected to fall y-o-y and q-o-q with mounting pressure on yields and costs.
The Negatives
Revenue grew slower than volume.
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- Both pax yields (9.9 cents) and cargo yield (40.3 cents) are 20% and 32% above pre-pandemic level, respectively, held up by still high load factors.
- If pax load factor decline in subsequent quarters, pax yield, as measured by revenue per available seat-km (RASK) could likely fall at a faster rate.
Cost escalated.
- Read more at SGinvestors.io.
