Tiger Airways takes third quarter hit
Tiger Airways Holdings has reported a loss after tax of S$118.5 million (US$92.6 million), including S$88.3 million in exceptional charges, for the quarter ended 31 December 2013.
This compared to a profit after tax of S$2.0 million recorded in the previous year’s corresponding quarter.
The exceptional charges consist of a S$30.3 million loss on the planned disposal of Tigerair Philippines and an impairment of associates of S$58.0 million in the quarter. The Group also recorded S$23.1m as its share of losses of associates.
At the operating level, total revenue declined by 30.5% to S$172.1 million in the December quarter, while total expenses fell 21.3% to $180.9 million year-on-year.
The contraction in revenue and expenses in the quarter was mainly due to the exclusion of Tigerair Australia as the airline ceased to be a subsidiary with effect from 8 July 2013. Furthermore, Tigerair Singapore reported lower revenue and higher expenses in the quarter. As a result, the Group recorded an operating loss of S$8.8 million for the December quarter, compared to previous quarter’s operating profit of S$17.9 million.
Koay Peng Yen, Group CEO, said, “Our third quarter operating performance was dragged down by industry overcapacity which had led to weaker yields and lower load factors. We recorded exceptional charges on losses from associates. Consequently the disposal of Tigerair Philippines will put us on a better footing going forward. We continue to address these challenges even as the macro environment remains difficult.”