Turbulence up ahead for Tiger Airways?

Tiger Airways' seat capacity fell by 20% and improvements are still far off in the horizon.

While Tiger Airways recorded a passenger load factor higher than 80%, this figure can only be attributed to a reduction of seat capacity. A rise in Tiger Airways' operating statistics could only happen once it ramps up its capacity to 64 sectors/day.

Here's more from the Market Pulse by OCBC RInvestment Research:   

Tiger Airways (TGR) reported that it recorded a passenger load factor (PLF) of 84%in Mar 2012. This is the second month in a row that TGR has reported a PLF higher than 80%. However, similar to a month ago, the seemingly decent PLF can be attributed to a big reduction of seat capacity. TGR’s seat capacity in Mar 2012 dipped 20% YoY to 542k while the number of passengers it served fell slightly more at 21% YoY to 455k. A real improvement in TGR’s operating statistics should only happen later this year when Tiger Airways Australia ramps up its capacity to 64 sectors/day. Meanwhile, we maintain our SELL rating and fair value estimate of S$0.60/share on TGR.