Tiger Airways reports passenger load factor of 81% in Feb

It's the second time that Tiger recorded a PLF of more than 80% since Aussie grounding but the worst is not over yet says OCBC.

Eric Teo of OCBC Investment Research notes that Tiger’s decent PLF in Feb 2012can be primarily attributed to the significant seat cpacity reduction of 17% YoY to 474k, as number of passengers flown fell 19% YoY to 384k.

Management said demand for its flights was weak in Feb 2012 because 1) the Chinese New Year holiday fell in Jan this year, compared to Feb in 2011, and 2) Tiger Airways Australia in Feb 2012 was still
operating at a less than optimal capacity.

It is also notable that, for the third consecutive month, TGR has retrospectively adjusted its comparative year-ago monthly operating statistics.

TGR said these adjustments are the result of reclassification of operating statistics, without providing further details.

“While the adjustments are not significant, TGR’s YoY operating statistics comparison will seem a tad worse when matched against previously announced numbers,” said Mr Teo.

“High jet fuel prices still on uptrend Thus far in 4QFY12, SGD-adjusted jet fuel prices (JETKSIFC Index) have averaged 3% higher QoQ. In fact, it has been two and a half years since quarterly average jet fuel prices have seen the current level. With fuel costs contributing to 40-45% of total expenses, persistently high jet fuel prices are likely to continue to depress TGR’s profitability,” he added.