Tigerair confident despite Q1 loss

Tigerair confident despite Q1 loss
By admin


Despite posting a loss in the three months to June 30, Tigerair expects to move back into the black in the next quarter as figures reflect its sale of a 60% stake in Tigerair Australia to Virgin Australia.

The airline group reported an operating loss of S$6.2 million (AU$5.3m) for Q1, down from the S$11.8 million (AU$10.1m) loss seen in the previous corresponding period.

“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,” group chief executive, Koay Peng Yen, said.

However, the company expressed confidence that performance would further improve in the next quarter.

“Financial results from Tigerair Australia will be deconsolidated from the Group’s financial statements from the next quarter as the sale of 60% of Tigerair Australia to Virgin Australia was completed on July 8 2013,” a statement said.

“Thereafter, Tigerair expects to report a positive operating profit.”

Q1 saw total revenue rise 30.3% to S$236.2 million (AU$202.2m), driven by a 32.6% increase in passenger traffic but partially offset by a lower yield, down 1.8%.

Ongoing capacity expansion saw the carrier’s costs rise 25.5% over the period to $242.2 million (AU$207.7m).

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