Tiger Airways struggles in $14m after-tax loss

The airline casts hope in Tiger Singapore's operating profit of $4m.

In a release, Tiger Airways Group narrowed its loss after tax for the quarter to $14 million compared to a $21 million loss recorded the previous year.

Here's more from Tiger Airways:

Total revenue for the quarter was $181 million, 1.4% higher than the $179 million recorded in the previous year. The increase was largely due to higher yield (measured in revenue per revenue passenger-kilometre) (+7.8%), offset by a 4.5% decline in capacity (measured in available seat-kilometres) and lower passenger load factor (-2.2 percentage points to 83.3%).

Total expenses increased 1.2% to $193 million as a result of an increase in average fleet size (+18%), partially offset by lower fuel cost (-3.1%) during the quarter. Cost per available seat-kilometre (CASK) increased 5.9%.

Chin Yau Seng, Group CEO said, “The Group’s financial performance is gradually coming back on track with Tiger Singapore turning in an operating profit of $4 million this quarter. It recorded a healthy passenger load factor of 85.1% as demand has caught up with capacity, which grew 14.3% during the quarter.

“Tiger Australia has also made good progress since the hiatus in services a year ago. We have been rebuilding the business with a strong focus on safety, operational excellence, customer service and profitability. Tiger Australia’s operating loss narrowed from $23 million to $21 million this quarter.

“Mandala Airlines, our associate airline in Indonesia, is expanding its presence in the region. It is launching its fourth route, Jakarta-Bangkok, in August 2012. Mandala currently operates three A320 aircraft. New aircraft will be progressively added to the fleet.

“We have also finalised the agreement to acquire a 40% stake in South East Asian Airlines (SEAir) in the Philippines. The completion of the investment is subject to the required regulatory approvals being obtained. SEAir has a fleet of five aircraft – three A320s and two A319s. It will be expanding its network to include operations from Manila to seven domestic cities from 31 July 2012,” said Mr Chin.

The Group continues to rebuild the business with a strong focus on safety, operational excellence and customer experience, and is striving to improve on its financial performance.

Volatile fuel prices will, however, continue to have an impact on the financial performance of the Group.

Tiger Singapore has seen healthy load factors in recent months as demand has caught up with capacity. It will continue to expand capacity through frequency increases and the addition of new routes.