Posted on: 27 July 2015 by Ross McSweeny
Tiger Airways Holdings Limited, which does business as Tigerair, has reported an operating profit of $0.6 million for the first quarter of the 2015-2016 financial year ended 30 June (1Q15/16), compared with an operating loss of $16.4 million during 1Q14/15.
Although the group revenue of $168.3 million for the quarter stood 2.0% lower than the prior year following a capacity decrease of 7.2%, the consolidation of Tigerair’s fleet and network led to improvement in yields of 4.7%. Load factor fell 1.2 percentage points, but remained at a healthy level of 83.5%.
Group expenses fell by 10.8% to $167.7 million compared with the same period last year, despite the benefit of lower fuel costs beings partially offset by a $4.1 million increase in expenses arising from changes in accounting estimates for maintenance provisions and aircraft depreciation policy. Group expenses were also impacted by the stronger US dollar.
The Group’s 1Q15/16 net loss after tax narrowed significantly to $1.7 million, compared with a net loss after tax of $65.2 million for 1Q14/15. This marks an improvement of 97.4%. The absence of shutdown costs and losses related to Tigerair Mandala contributed to this improvement in bottom-line.
At the end of the quarter, the Group generated positive cashflows of $14.4 million from core operations and remained in a net cash position.
Lee Lik Hsin, Tigerair’s CEO, averred, “We are encouraged by our improving results, and will continue to work towards a return to full-year profitability.”
Even though the period between July and September is a seasonally weak quarter for Tigerair, the Group expects to keep up the recovery momentum and will continue exploring all opportunities for synergies with Scoot and the rest of the SIA Group in commercial, operational and other areas.