Singapore Airlines passenger load factors fell to 73.2% in March 2011

March load factors were weaker, with both passenger and cargo numbers coming off.

SIA's passenger load factors fell 7.6 pts, while cargo load factors fell 3.9pts to 64.5%, said Kim Eng Securities.

According to Kim Eng Securities, While both divisions of SIA saw stronger traffic sequentially on the back of the one-week school vacation and stronger trade, respectively, this was still weaker on a year-on-year basis.

Furthermore, SIA has added capacity quite aggressively in these months. Unsurprisingly, the carrier acknowledged a drop-off in traffic to Japan in the wake of the earthquake on 11 March.

Overall, while Kim Eng Securities expects earnings for SIA to remain solid, Kim Eng Securities believes SIA's growth cycle has plateaued.