Singapore Airlines still offering too much capacity - load factor down in April
Singapore Airlines (SIA) reported falls in systemwide passenger traffic (RPKs) moderated last month, but were still down 17.7% compared to Apr-2008. Demand levels were influenced by the later Easter (which fell in April this year). SIA stated the number of passengers carried decreased by 18.2% year-on-year, to 1.29 million. SIA stated it would "continue to monitor traffic movements and make appropriate adjustments where necessary to match capacity to forward demand".
Singapore Airlines passenger number growth and cargo volume (tonnes) growth: May-08 to Apr-09
Source: Centre for Asia Pacific Aviation & Singapore Airlines
The traffic report follows SIA's dismal fourth quarter earnings performance, as yields slumped.
Load factors down 4.2 ppts - pressure on all route regions
The carrier reduced capacity (ASKs) by 12.9% and passenger load factor (PLF) declined by 4.2 ppts to 72.2% - an improvement from the shocking 11.4 ppts fall in March to 69.4%.
Singapore Airlines passenger load factor growth: May-08 to Apr-09
Source: Centre for Asia Pacific Aviation & Singapore Airlines
The year-on-year reduction in capacity follows the reduction in frequencies and termination of services to Los Angeles (via Taipei), Osaka (via Bangkok), Amritsar and Vancouver (via Incheon). SIA noted, "the ongoing global economic slowdown continues to impact travel demand. As a result, all route regions except East Asia registered lower PLFs compared to last year".
Singapore Airlines passenger load factor growth by region: May-08 to Apr-09
Source: Centre for Asia Pacific Aviation & Singapore Airlines
Prevailing market conditions "continue to affect global market demand for air cargo"
SIA noted that overall cargo traffic (FTKs) fell by 21.6%in April 2009, which outpaced the reduction in capacity of 16.5%. As a result, overall load factor dipped by3.7 ppts points to 58.0%. Cargo load factors also fell in all regions, except Southwest Pacific.
Singapore Airlines PLF and CLF growth: Apr-09
Source: Centre for Asia Pacific Aviation & Singapore Airlines