SIA Oct 2008 load factor drops

Opinion: Even the world's best performing airline is finding it hard in this slowing economy

Nov 17, 2008 Straitstimes

By Karamjit Kaur, Aviation Correspondent

SIA reported today that it filled an average of 77.5 per cent of seats last month - a drop of 0.8 percentage points compared with the same month last year. -- ST FILE PHOTO

SINGAPORE Airlines continues to carry more passengers but capacity is growing faster which means fewer seats are being filled.

The airline reported today that it filled an average of 77.5 per cent of seats last month - a drop of 0.8 percentage points compared with the same month last year. It was also the 10th straight month of decline.

This despite carrying more than 1.6 million passengers, a 1.3 per cent increase over the 1.58 million carried in October 2007. Cargo was hit especially bad.

Total volume carried fell 8.4 per cent to 104.7 million kg. Although capacity was cut 7.1 per cent, SIA managed to fill just 59.4 per cent of the total space.

Going forward, the airline which saw profits for the three months to end-September drop 36.2 per cent to $323.8 million intends to shed more flights and seats to boost the bottomline.

Several poor-performing routes have also been dropped.