Enough already!: SIA adds seats faster than they’re demanded

With 76.6% passenger load factor in August, the airline may continue to suffer drops if it doesn’t stop increasing capacity.

OCBC Investment Research said, “SIA may continue to experience falling passenger load factors if 1) it continues its 5% capacity increase for the rest of FY11 and 2) the upcoming peak air travel months disappoint.”

It was noted that Singapore Airlines added passenger capacity faster than air travel demand growth in August. “This resulted in a fall in passenger load factor to 76.6%, below the recently released load factors of international flights worldwide and in Asia Pacific (from the IATA),” said OCBC.

The analyst said SIA's falling load factors are expected.