Singapore Airlines expects passenger yields a proxy to airfares could decline in 2023 as rival airlines bring back planes idled during the pandemic and add capacity.
“We would not expect yields to stay at the same elevated levels we were at in 2022,” SIA Executive Vice President Commercial Lee Lik Hsin told analysts and media of the outlook on an earnings call.
SIA’s passenger yields across the group’s airlines were 32% higher during its last financial quarter compared to the same quarter in 2019 before the pandemic grounded airlines globally, according to a Reuters calculation based on the earnings report.
Lee said bookings remain strong through the Lunar New Year in January 2023 but a little early to determine demand beyond that apart from promotional sales that were performing well.
The airline said higher fuel prices, inflationnary pressures across the supply chain, geopolitical issues, and the risk of global recession remained a concern beyond the Chinese New Year period.
