Is the worst behind Singapore Airlines? – Share Wrap
Singapore Airlines' shares jumped 4.5% yesterday as the broader Singapore Straits Times index advanced 2.25%, as investors bet on an improving outlook for the city state and its flag carrier.
Singapore's Purchasing Managers Index (PMI) (out yesterday) showed a reading of 49.2 in Apr-2009, up from 47.1 in Mar-2009 (a reading above 50 means manufacturing is expanding). Analysts are expecting the GDP contraction to moderate from -11% in 1Q2009 to negative 6-7% in 2Q09.
Singapore Airlines (SIA) is due to report its Apr-2009 traffic data around the middle of this month, which should show a lift from Easter falling in April this year. SIA's Mar-2009 traffic was dismal, with a 23% year-on-year reduction in passenger numbers and an 18.3% reduction in cargo volume. SIA's load factor slumped 11.4% in Mar-2009 - a figure the airline hopes not to repeat any time soon.
Elsewhere, Jet Airways jumped 7.8% on reports of a codeshare deal with Virgin Atlantic on the Mumbai-London route.
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Asia Pacific selected airlines daily share price movements (% change): 05-May-09
Source: Centre for Asia Pacific Aviation & Reuters