Tigerair posts S$23.8m net profit in Q2

Tiger Airways Holdings Limited (Tigerair) has booked a second quarter net profit of S$23.8 million, compared to a loss of S$18.3 million in the corresponding quarter last year.

In a statement, Tigerair said the net profit in Q2 took into account the gain on partial disposal of Tigerair Australia, which amounted to S$106.1 million.

The one-time gain on partial disposal of Tigerair Australia has mitigated losses from its associates.

The group recorded an impairment loss in associates of S$48.3 million and share of losses from associates of S$24 million during the second quarter.

For the second quarter which ended September 30, its group revenue decreased by 16.7 per cent on-year to S$163.8 million.

Tigerair said its bottom line was impacted by higher airport and handling charges following its relocation from Changi Airport's Budget Terminal to Terminal 2, and losses in the associate airlines in Australia, Indonesia and the Philippines.

Looking ahead, the company said Tigerair Singapore will take delivery of three more Airbus A320s, ending the financial year with 26 aircraft.

But passenger load factor and yield are expected to face some near-term pressure, as it will take time for the additional capacity to be absorbed into the market.

Meanwhile, Tigerair Mandala will continue to grow its presence in Indonesia.

Tigerair Philippines is also seeking to expand its route network, particularly from the Philippines to Hong Kong and Thailand.

It has applied for air rights between the Philippines and Japan following a bilateral agreement to increase flights between the two countries.

SOURCE