Tight cost control key for SIA in weak-yield environment

A WEAK yield environment seems to be par for the course for airlines in the region these days.

Singapore Airlines (SIA), for one, is still facing overcapacity as it heads towards the tail-end of its financial year ending March 31, 2017. This persistent challenge is putting downward pressure on yields. Adding to the headwinds are uncertain global economy and geopolitical concerns, which weigh on travel demand.

"SIA's misfortunes are due to overcrowding on its key markets," wrote Maybank Kim Eng analyst Mohshin Aziz in a report.