Loads rise but yield fears remain

Singapore in particular reported healthy figures in its monthly updates. Revenue passenger kilometres increased almost 12% on the back of less than 3% capacity growth leading to load factors rising 6.3 percentage points to 79.5%. Loads on South West Pacific routes soared 9.6 points to 81.1%.

“However, the operating environment remains challenging amid elevated jet fuel prices,” the carrier said. “With the recent promotional fare activities, passenger yields are likely to come under pressure.”

Cathay echoed the fears despite a 10.6% rise in passenger numbers. Loads climbed 2.5 points to 79.4% after capacity increased 8.2%.

“The big issue at the moment is the accelerating yield decline in both the economy and premium cabins, resulting from a combination of the continuing economic uncertainty and competitive pressure,” general manager revenue management James Tong said.