Tigerair Performance Improves With After Tax Profit of S$2M for 3QFY15
26-Jan-2015 Tiger Airways Holdings Limited ("Tigerair" or the "Group") has reported a profit after tax of S$2.2 million for the quarter ended 31 December 2014 ("3QFY15"), a turnaround from a loss after tax of S$118.5 million recorded in the corresponding quarter of prior year ("3QFY14").
Total revenue improved by 5.9% to S$182.3 million in 3QFY15, while total expenses contracted by 1.5% to S$178.2 million year-on-year. This resulted in an operating profit of S$4.1 million, compared to an operating loss of S$8.8 million a year ago.
The improved performance was achieved on the back of stronger yield (4.9%), higher load factor (6.2 percentage point improvement) and lower capacity (-5.7%). This reflects the success of the Group's initiatives to focus on its Singapore operations in its execution of turnaround plan.
Mr Lee Lik Hsin, Group CEO of Tigerair, said, "We had to make some difficult decisions in the turnaround process. Though we are not out of the woods yet, we are encouraged by the improving financial results. We are also heartened by strong shareholders' support of our rights issue."
Outlook
The strengthening of the Group's balance sheet through the recent rights issue will place the Group on a firmer footing to fully execute its turnaround plans. The Group remains vigilant over the macro-economic uncertainties and intense competition.
The Group will continue to drive improvements in operating performance through strategic alliances. In particular, there will be a stronger partnership with Scoot, and with the rest of the Singapore Airlines Group.
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