Tiger Airways’ revenue down 1.2% to $168m

Even though Tiger Airways Singapore recorded a 50% leap in revenue, it was offset by the losses incurred by Tiger Airways Australia.

According to a financial statement, the Group achieved revenue of $168.4 million (3Q FY2010-11: $170.5 million), a decrease of $2.1 million or 1.2% year-on-year. This was a result of higher revenue contributed by Tiger Airways Singapore, offset by lower revenue generated by Tiger Airways Australia.

Group expenses went up $37.4 million (+26.0%) mainly attributable to an average increase of 33.9% in fuel prices and a 38.8% increase in the average size of the operating aircraft fleet. Unit cost (as measured by cost per available seat kilometre) went up 11.9% to 6.80 cents. Excluding fuel, unit cost increased 5.0%.

The Group recorded a net loss of $17.4 million in 3Q FY2011-12 compared to a profit of $22.5 million in the corresponding quarter last year. The loss was mainly caused by high fuel prices as well as the curtailment of Tiger Airways Australia’s flying programme mandated by Civil Aviation Safety Authority of Australia.

Tiger Airways Australia continued to incur operating losses which amounted to $8.6 million for the quarter (3Q FY2010-11: operating profit of $5.9 million) primarily because of the under-utilisation of aircraft due to CASA restriction. Revenue declined 51.0% to $40.3 million from $82.2 million in the corresponding quarter last year.

With increased capacity and network, Tiger Airways Singapore generated 49.5% higher revenue which amounted to $128.5 million in this quarter compared to $86.0 million in the same quarter last year. However due to lower yield and load factors, and persistently high fuel prices, Tiger Airways Singapore recorded an operating loss of $4.8 million, compared to an operating profit of $19.4 million in the corresponding quarter last year.

Group revenue for the nine months to 31 December 2011 declined $2.0 million to $457.1 million. The 39.4% growth in revenue of Tiger Airways Singapore, driven by a 58.8% rise in capacity (as measured by available seat kilometre) was offset by a 45.6% decline in revenue of Tiger Airways Australia as a result of the combined effects of the volcanic ash cloud in the first quarter, the six-week flight suspension and the subsequent restriction in capacity in Australia from the second quarter. Losses were reported by both subsidiaries; Tiger Airways Australia, as a result of the under-utilisation of aircraft and high fuel costs and Tiger Airways Singapore, as a result of lower load factors coupled with high fuel costs. The Group reported a net loss of $87.9 million for the nine months to 31 December 2011 (9M FY2010-11: net profit of $38.5).