Posted on: 28 January 2015 by Ross McSweeny
Tiger Airways Holdings has reported a profit after tax of S$2.2 million for the third quarter of this financial year (3QFY15, which ended on 31 December 2014), a turnaround from a loss after tax of S$118.5 million recorded in the corresponding quarter of prior year (3QFY14).Group CEO of Tigerair, Lee Lik Hsin, explained, “We had to make some difficult decisions in the turnaround process. Though we are not out of the woods yet, we are encouraged by the improving financial results. We are also heartened by strong shareholders’ support of our rights issue.”The total revenue for the quarter improved by 5.9% to S$182.3 million, while total expenses contracted by 1.5% to S$178.2 million year-on-year. This resulted in an operating profit of S$4.1 million, compared with an operating loss of S$8.8 million a year ago.Tigerair claims the improved performance reflects the success of the Group’s initiatives to focus on its Singapore operations in its execution of turnaround plan, as it was achieved due to a stronger yield (+4.9%), a load factor which increased by 6.2 percentage points, and a capacity decrease of 5.7%.In terms of the Group’s future plans, it will continue to drive improvements in operating performance through strategic alliances with Scoot and with the rest of the Singapore Airlines Group.