Tiger Airways posts $12.2mn loss before tax

The airline continues to expand its Singapore operations by 64% from to having an average of 18 aircraft in its fleet in current financial year.

Tiger Airways Holdings Limited (“the Company”) on Thursday announced its results for the quarter ended 30 June 2011, the first quarter of the financial year ending 31 March 2012. The Tiger Airways Group (“Group”) recorded a loss before tax for the quarter ended 30 June 2011 of $12.2 million, compared to a $1.3 million profit before tax for the quarter ended 30 June 2010. The loss after tax for the quarter ended 30 June 2011 was $20.6 million compared to a profit after tax of $1.9 million in the quarter ended 30 June 2010. The tax expense of $8.4 million includes an accounting adjustment of $6.7 million relating to the reversal of the previously recognised deferred tax asset for Tiger Airways Australia.

Revenue growth of 23.2% to $178.8 million from $145.1 million was ahead of both passenger and seat capacity growth of 18.2% and 16.0% respectively. Unit costs in the quarter increased compared to the same quarter last year, significantly impacted by a 47.4% increase in fuel prices compared to the same quarter last year. Cost per Available Seat Kilometre excluding fuel and foreign exchange movements reduced by 2.0%. The Group load factor increased to 85.8% for the quarter, up 1.6 percentage points compared to the same quarter last year.

Tiger Airways Singapore recorded an operating profit of $7.5 million for the quarter ended 30-Jun- 11, a decrease of 44.4% compared to the same quarter last year, primarily due to higher fuel prices. Tiger Airways Australia recorded an operating loss of $23.2 million for the quarter compared to an operating loss of $10.6 million in the same quarter last year, with the performance significantly impacted by both higher fuel prices and the disruption to Australian domestic air travel due to volcanic ash from Chile's Puyehue-Cordon Caulle volcano.

Mr. Chin Yau Seng, Acting Chief Executive Officer, said: “Whilst we are disappointed with the result at Tiger Airways Australia in what is seasonally our weakest quarter of our financial year, we are pleased with the credible performance at Tiger Airways Singapore. Recording a $7.5 million operating profit in difficult trading conditions is a testament to our Singapore team’s focus on driving higher ancillary revenues against the backdrop of significantly higher fuel prices, according to a Tiger Airways report.

“Tiger Airways Singapore continues to expand its network. We will be growing Tiger Airways Singapore’s fleet from an average of 11 aircraft last financial year to an average of 18 aircraft this financial year, a 64% year-on-year increase. We recently announced new services to Cebu and Davao, and will be reintroducing services to Bangalore in October 2011 following an 11-month absence. Further, we have announced increases in frequencies to a number of destinations including Guangzhou, Hat Yai, Kuching, Taipei, Trichy and Bangkok.

“In relation to the recent suspension of Tiger Airways Australia’s flights, the Tiger Airways Australia team has worked constructively to address the concerns raised by the Civil Aviation Safety Authority and gear up for a re-launch of the airline. We believe we have the right low cost model to serve the Australian market. We thank the people who have flown with us before, and we look forward to welcoming them back on our aircraft. Let me assure all stakeholders that safety is and will remain of paramount importance at all our airlines.” said Mr. Chin.