Tigerair Singapore passenger load factor dropped to 78.3%

Capacity growth outpaced passenger traffic rise.

According to OSK, budget carrier Tigerair Singapore has reported a 10.2 percentage point year-on-year slide in
passenger load factor to 78.3 per cent for December as capacity growth outpaced passenger traffic rise.

Here's more:

Passenger traffic for Tiger Airways' most established carrier - as measured in revenue passenger-kilometres - increased 13.1 per cent while capacity rose 27.9 per cent. Meanwhile, the number of passengers carried by the airline was 13.3 per cent higher at 494,000.

Its Indonesia-based associate, Tigerair Mandala, reported a 197.8 per cent surge in passenger traffic while capacity growth was nearly as high, 176.1 per cent. This helped passenger load factor to increase 5.2 points to 71.6 per cent. The number of passengers carried increased 153.5 per cent to 180,000, in line with the expansion of its network.

Earlier this week, the group said that it was divesting itself of its 40 per cent stake in Tigerair Philippines - which has been unprofitable since Tiger acquired the stake for USD2.5 million in 2012 - for USD7 million to Cebu Pacific.

Cebu Pacific is also acquiring the remaining 60 per cent in Tigerair Philippines from other investors for around USD8 million. The group said that the estimated net loss from the divestment is around SGD13.5 million, assuming that the proposed sale had been completed on Sept 30, 2013.