Tigerair takes off with Q1 profit
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Tigerair‘s resurgence is continuing, with the low-cost carrier posting an operating profit for the first quarter of the 2015-16 financial year.
The SG$600,000 (US$439,000) profit marks a rebound from the SG$16.4 million operating loss experienced in the same quarter last year, and continues a recent upturn in performance. For the full 2014-15 financial year, Tigerair reduced its operating loss by 23% to SG$39.9m, while its final quarter loss narrowed by 91%.
These improvements are being driven by the Singapore-based company’s turnaround strategy, which included dropping its loss-making subsidiaries in Indonesia and the Philippines. A reduction in Tigerair’s fleet size and lower fuel prices are also helping the airline.
“We are encouraged by our improving results and will continue to work towards a return to full-year profitability,” said Lee Lik Hsin, CEO of Tigerair.
In the first quarter, Tigerair’s group revenue declined 2% to SG$168.3m, following a 7.2% reduction of seat capacity. The airline’s average load factors dipped slightly to 83.5%. But the improvements to the airline’s bottom line were driven by a 10.8% reduction in costs, including a lower fuel bill.
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