Thought that this may interest some - comes from an investment bank.
"SIA December operating statistics showed that SIA had a very good month.
Capacity continued its seventh month of steady capacity expansion. Planes were effectively full with a pax load factor of 79.4 with total passenger volume (RPK) back to last year's levels. We continue to think the Street underestimates TigerAir and its ability to make up for any cannibalization from budget airlines. We maintain our BUY recommendation, estimates and
target price of S$14.25.
Capacity continues to expand. SIA continues to follow through on its capacity expansion plan with the goal of getting back to pre-SARS levels early next year. Passenger capacity is now 4.2% below last year's level on a passenger basis and cargo is 4.2% above last year's levels with the total
capacity 0.2% below last year's levels.
High load factors hint at extra demand. SIA plans capacity ahead of time but does not know until just before the flights whether they planned correctly. With a passenger load factor of 79.4, it appears that demand was stronger than SIA anticipated. SIA posted its highest December over the
seven-plus years that we have been tracking and the second highest load factor in two years. Americans appear to be the biggest swing factor as America's load factors improved 8.0 percentage points to 81.1. Cargo also surprised on the upside as Cargo Freight Tonne Kilometers (CFTK) surged
6.8%."
The bean counters must be rubbing their hand in glee, pondering how they can loose a few hundred million so that the directive from Some Minister is met that the max profit that WILL be declared Shall be $500 mil. Also think that the 4th floor powers will be pondering just how they are going to crew the summer schedule. Interesting times to come.