Tigerair results continue to improve
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Loss-making low-cost carrier Tigerair has continued to improve its financial position, with a significant upswing in its performance in the fourth quarter of its financial year.
The Singapore-based company posted an operating loss of just SG$2.3m, 90.6% better than the SG$24.2m loss it recorded in the same period last year.
It also managed to improve its yield (+12%) and load factor (+3.9 percentage points) and reduce its fuel cost (-20%) during the quarter.
Indeed, if it were not for adjustments relating to the company’s aircraft leases, Tigerair would have recorded a quarterly operating profit of SG$4m.
“Our turnaround efforts continue to bear fruit,” said Lee Lik Hsin, CEO of Tigerair. “More than half of the recovery in operating performance came from stronger yields and load factors, while the remainder came from lower fuel price. The changes in provisions relating to our fleet will also put us on a firmer footing moving forward.”
For the full financial year 2014-15, Tigerair’s operating loss narrowed to SG$39.9m, from SG$52m in 2013-14.
Looking ahead, Tigerair said it expects to “continue making headway” in terms of its turnaround plan, by reducing its fleet size and improving yields and load factors. It also said it expects to benefit from lower fuel prices.
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