Tigerair licks its wounds as profitability and savings shrink

Operating costs jumping 2.4% kept it in the red.

Tiger Airways Singapore Pte Ltd (Tigerair) is still in the red. According to a report by OCBC Investment Research (OCBC), a 57% core net loss decline in 3Q15 proved to be insufficient in pushing the airlines back to profitability. OCBC also notes that significant savings continued to elude Tigerair as operating costs piled up. Maintenance, material, and repair costs saw a 50% YoY rise, leaping from S$9.1m to S$27.4m.

Tigerair remains hopeful, however, as its turnaround plan pursues its return to profitability through strategic partnerships. It has received approval for the Singapore government to work together with Philippines’ Cebu Pacific, and an increased collaboration with Singapore Airlines group is in the books.

The company is clearly taking small steps in the right direction, but Tigerair still has miles to go. The Southeast Asia ratio of orders to current fleet stands at 0.9-- the highest in the world, according to the Centre for Aviation (CAPA)-- and low-cost carriers are still dominating these orders.