Tigerair has reported a loss of SG$118.5 million (US$92.6m) for the quarter ending 31 December 2013.
The result, which included one-off costs associated with the sale of Tigerair Philippines to Cebu Pacific, marks a significant reversal from the SG$2m profit it posted in the same period in 2012.
Revenues declined 30.5% to SG$172.1m in the quarter, and while this was mainly due to the exclusion of Tigerair Australia from the results, following its sale to Virgin Australia earlier in the year, Tigerair admitted that its Singapore operations also generated lower revenue and higher expenses in the quarter. The resulted in an operating loss of SG$8.8m for the group, down from an operating profit of SG$17.9m in the same quarter of 2012.
“Our third quarter operating performance was dragged down by industry over-capacity which had led to weaker yields and lower load factors,” explained Tigerair’s group CEO, Koay Peng Yen. “We continue to address these challenges even as the macro environment remains difficult.”
He added however, that the sale of Tigerair Philippines would put the company “on a better footing going forward”.
For the first nine months of its financial year, Tigerair’s post-tax loss widened to SG$127.5m, from SG$30.0m in the same period in 2012.