Tigerair alerts investors after three straight years in the red

Will its turnaround plan work?

Tigerair today alerted investors that it has been in the red for three consecutive years.

The floundering budget carrier choked up over half a billion dollars in losses since FY13.

In FY15, the group booked a net loss of $264.233m, 18.5% higher than its loss of $222.991m in FY14. Its FY14 net loss is almost five times its net loss in FY13, which stood at just $45.395m.

This is not the first time that Tigerair issued such an alert. The group also issued a similar alert in May 2014, after booking losses in FY12, FY13, and FY14.

In spite of its sizeable losses, Tigerair remains convinced that its turnaround plan will work.

“Our turnaround efforts continue to bear fruit. More than half of the recovery in operating performance came from stronger yields and load factors, while the remainder came from lower fuel price. The changes in provisions relating to our fleet will also put us on a firmer footing moving forward,” said Lee Lik Hsin, CEO of Tigerair.