SIA passenger yield down 3.4% in H1

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Singapore Airlines' passenger yield declined in the first half of its 2012/2013 fiscal year as the carrier cut fares to overcome weak market conditions.

Passenger yield declined by 3.4% to 9.31 cents per ASK for the six months ended 30 September, says SIA.

Chief financial officer Chan Hon Chew says the carrier had to cut fares to stimulate demand, a trend he believes may continue.

"Demand is suffering because of the weak economy," he says.

As a result, the Star Alliance carrier's passenger load factor increased by 2.1 percentage points to 79.6% compared with the same period last year.

However, the airline's breakeven load factor increased by 1.8 percentage points to 79.8 per cent.

Despite prevailing economic weakness, the airline has no plans for significant capacity cuts to boost passenger yield.

"We are monitoring capacity closely but we don't see a need for cuts," says chief executive Goh Choon Phong.