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Losses still dog Tigerair after 70 per cent jump in revenue

written by WOFA | July 23, 2013
New ownership and new brand - now Tigerair needs profits. (Tigerair)

Tigerair Australia’s revenue increased more than 70 per cent during the three months to 30 June, rising to $21.1 million. The result was in line with 68.9 per cent growth in passenger numbers and a marginal gain in yield. The gains helped to offset higher operating costs, resulting in a narrowing of the airline’s operating loss to $14.8 million for the quarter.

The trends locally followed that of Tigerair Australia’s Singapore-based parent company, which also narrowed its group operating loss to S$6.2 million for the quarter ended 30 June 2013, compared to an operating loss of S$11.8 million recorded in the previous corresponding quarter. Total revenue increased 30.3 per cent to S$236.2 million, on the back of a 32.6 per cent increase in passenger traffic, which was partially offset by lower yield.

Financial results from Tigerair Australia will be de-consolidated from the group’s financial statements from next quarter following the sale of 60 per cent of Tigerair Australia to Virgin Australia for $35 million. The transaction was completed on July 8.

The removal of Tigerair Australia from the consolidated accounts will push the Tigerair group to an operating profit, subject to the performance of Tigerair Mandala and Tigerair Philippines, as it continues to strengthen its operations and expand in the Indonesian and Philippines markets.


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