New year but similar challenges for SIA

IT MAY be a new year but declining yields - a recurring theme in 2016 - will continue to be a concern for Singapore Airlines (SIA).

In fact, yields will probably be an ongoing worry for South-east Asian carriers in general which are staring at a tough operating environment. The growth of low-cost carriers over the years has resulted in a competitive short-haul market. Meanwhile, in the long-haul market, the Gulf carriers and recently the North Asian airlines are aggressively adding capacity to Europe and North America at cut-throat fares.

For SIA, both yields and passenger loads have been under pressure and will continue to be so…