Tigerair's Q1 losses climb to $33m

Losses at Tigerair for the three months to June 30 more than doubled to about $33 million compared with the same quarter last year, dragged down by the performance of its associates in Indonesia and the Philippines as well as higher expenses.

This was despite the group reporting a much narrower operating loss from $11.8 million to $6.2 million during the quarter. Overall turnover grew 30 per cent to $236.2 million, as Tigerair carried more passengers in its key Singapore and Australian markets, the group said yesterday.

The airline comprises Tigerair Singapore and Tigerair Australia, and associates Tigerair Mandala (Indonesia) and Tigerair Philippines.

Group chief executive officer Koay Peng Yen said the improvement in operating performance was due to the Singapore and Australian markets recording "significant increases in traffic volume in spite of a traditionally weak quarter for the air travel industry".

Total spending rose for the first quarter by 25.5 per cent to $242.4 million. During the quarter, Tigerair flew close to two million passengers, or a 36 per cent increase from a year ago.

The pick-up in Australia was significant given the big hit the airline took in July 2011 when the Australian civil aviation authority grounded all its planes over safety concerns. Since then, Tigerair has restructured its Australian business and recently sold a 60 per cent stake to Virgin Australia.

Going forward, the airline will continue to expand its business in South-east Asia with new aircraft and new destinations flown from Singapore, Indonesia and the Philippines, Mr Koay said during a media teleconference yesterday after the numbers were released.

In Indonesia, the group will continue to build its market presence while the Philippine arm will focus on growth in potential markets such as China.

To grow market share and boost shareholder value, the group recently unveiled a new brand and look - ditching its leaping tiger icon and changing its name from Tiger Airways to Tigerair.

Mr Koay said: "The recent brand refresh marks a significant milestone." The new Tigerair will continue to invest in new initiatives to make travel "a stress-free affair" for customers, he said.

SOURCE