Tiger losses widen
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Tiger Airways’ losses widened in the first quarter of the 2013-14 financial year.
The Singapore-based low-cost carrier group posted a net loss of SG$32.8 million (US$25.9m) for the three months to 30 June 2013 – more than double the SG$13.7m loss it recorded in the same period last year.
While a 30.3% year-on-year rise in revenues, to SG$236.8m, outpaced a 25.5% increased in costs, to SG$242.4m, the impact of a SG$26.6m share of losses from the airline’s Philippine and Indonesian subsidiaries affected the company’s bottom line.
“Our operating performance improved during the April to June period as Tigerair Singapore and Tigerair Australia recorded significant increases in traffic volume in spite of a traditionally weak quarter for the air travel industry. However, taking in our share of loss in our associate airlines, Tigerair Mandala and Tigerair Philippines, we ended up with a higher after-tax loss,” explained Koay Peng Yen, group CEO of Tiger Airways Holdings.
Tigerair Singapore’s operating profit jumped 56.4% to SG$5.9m in the quarter, while Tigerair Australia’s loss narrowed to SG$17.3m. But the company was hit with a SG$20.6m loss from its Indonesian unit, Tigerair Mandala, while its share of Tigerair Philippines’ loss amounted to SG$6.0m.
Tiger said it expects to achieve an operating profit from next quarter, following the sale of a 60% stake in Tigerair Australia to Virgin Australia. It added however, that Indonesian and Philippine losses are likely to continue.
Comments are closed.