Tiger Airways operating loss widens
Operating losses at Tiger Airways Holdings widened to S$12.8 million (US$10.3 million) from S$11.5 million a year ago in the second quarter to the end of September, as losses at affiliates and the increased costs hit the Singapore budget carrier.
However, for the six months ended 30 September 2013, operating loss contracted to S$19 million, from S$23.3 million recorded in the same period a year ago.
Koay Peng Yen, Group CEO, said, “The Group posted a net profit for the second quarter,
after taking into account the gain on partial disposal of Tigerair Australia. Our bottom line
was nevertheless impacted by higher airport and handling charges following our relocation
from Changi Airport’s Budget Terminal to Terminal 2, and losses in the associate airlines in
Australia, Indonesia and the Philippines.”
The Group reported a profit after tax of S$23.8 million for the quarter, compared to a loss of S$18.3 million recorded in the previous corresponding quarter last year.
In spite of higher revenue from Tigerair Singapore, total revenue declined 16.7%
to S$163.8 million year-on-year, following the partial disposal of Tigerair Australia during the
quarter.
Tigerair Singapore recorded a 13.8% increase in revenue to S$151.3 million, driven by growth in traffic volume (+21.9%) but partially offset by weaker yield (-5.6%). The deterioration in net yield was largely affected by higher passenger service charge at Changi Airport Terminal 2. Unit cost went up by 3.6% as the increase in expenses (+32.1%) outpaced capacity growth (+27.5%).
Consequently, Tigerair Singapore recorded an operating loss of S$18.1 million compared to an operating profit of S$4.8 million a year ago.
Share of loss from Tigerair Mandala amounted to S$7.7 million for the quarter. The airline
took delivery of one Airbus A320 in July 2013 and currently operates a fleet of nine aircraft.
Share of loss from Tigerair Philippines amounted to S$9.0 million for the quarter. The airline
operates a fleet of five aircraft and flies to 12 international and domestic routes. Tigerair
Philippines commenced a new route between Manila and Phuket in September.
Share of loss from Tigerair Australia amounted to S$7.3 million for the quarter. Tigerair
Australia’s fleet of 11 aircraft covers 16 domestic routes.
