Ahead of SIA’s Q3 FY2023 earnings announcement, Yap also raised revenue passenger kilometres demand forecast by 4 per cent.

He noted that CGS-CIMB’s previous expectations are likely to be exceeded due to both higher-than-expected available seat kilometres capacity and passenger load factor, based on SIA’s operating statistics in October and November 2022.

The brokerage has also slashed all-in jet fuel price assumptions for FY2023 to FY2025 due to lower Brent crude oil price assumptions and lower jet-fuel-to Brent crack spread assumptions.

In the light of a likely global slowdown which could also impact cargo yields, Yap is also expecting the airline to experience lower revenue tonne kilometre demand as well as reduced cargo yield.