Tigerair has a new look but the group’s outlook remains relatively cloudy following 1QFY2014 loss

Tiger Airways Holdings slipped back into the red for the quarter ending 30-Jun-2013 (1QFY2014) as its affiliates in Australia, Indonesia and the Philippines were again unprofitable. The group is confident its new partnership with Virgin Australia will soon lead to profits at Tigerair Australia and there will also be improvements at Tigerair Mandala and Tigerair Philippines, but challenges remain at all three LCCs.

Meanwhile the group faces potential over-capacity in its home market as Tigerair Singapore accelerates expansion. The carrier is adding five aircraft over the next nine months for a total of 26 A320s, marking the biggest expansion in two years, when over-capacity led to losses.

There are bigger potential opportunities for growth in Indonesia, but Tigerair Mandala has not yet become profitable. The outlook for Tigerair Philippines, which has been stuck at only five A320s for the last year, is bleaker.