Singapore Airlines' load factors heading to turbulence

It fell 0.2 percentage points.

According to CIMB, passenger loads for the mainline fell in March after seven straight months of improvement. Loads for SilkAir also deteriorated, while cargo traffic continues to soften.

Parent company load factors fell 0.2%pts in March against a rise of 1.8%pts for FY13, as passenger traffic growth of 2.7% yoy lagged capacity growth of 3%.

Here's more from CIMB:

Load factors softened across all route regions except for East Asia and Americas. SilkAir witnessed loads dip 6%pts as traffic growth of 7% was well short of the 16% increase in supply.

Cargo traffic remains muted. Although load factors jumped 2%pts last month, this rise was a result of traffic (down 2% yoy) declining more slowly than capacity (down 5% yoy).

SIA continues to report in its commentary that its efforts to boost loads are expected to place downward pressure on yields. Persistent S$ appreciation relative to the US$ and other currencies remains a headwind to profitability as well.