SIA's long-haul traffic under stress

SINGAPORE (Nov 2): Maybank Kim Eng is maintaining its “hold” ratings for Singapore Airlines group with a target price of $9.70 ahead of its results release on Thursday.

Analyst Mohshin Aziz notes that the SIA’s long-haul traffic is “under stress due to overcapacity and competitive pressures”.

“Load factors have plummeted, especially to Europe and the Americas, which is consistent with statements made by other airlines in the region,” said Aziz in a note on Monday, adding that passenger capacity had risen by 3.5% while traffic fell 0.4% resulting in a 3.2-percentage point dip in load factor to 79.9%.

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