Tigerair Singapore CY2015 outlook brightens after return to profitability in fiscal 3Q

Tigerair posted a small profit in the three months ending 31-Dec-2014, marking the first time the group was in the black in two years. Tigerair Singapore was roughly break-even after five consecutive quarters of large losses as capacity reductions drove an improvement in yields and load factors.

Tigerair has successfully completed the first phase of its turnaround initiative after closing or selling unprofitable affiliates and reducing capacity in its original market, Singapore. But the group still faces challenging market conditions, including continued overcapacity on some key routes.

Tigerair also still needs to fully implement other components of its new strategy to be profitable on a consistent basis. Partnerships are particularly crucial for Tigerair to complete a turnaround and eventually resume growth.