Tiger Airways still in the red as of Q1
AFP FILE PHOTO
MANILA, Philippines—Singapore’s Tiger Airways posted an operating profit for the second quarter in a row for the period ending March 31, although operations in the Philippines are still in the red despite efforts to expand.
The company, which operates in the Philippines with partner Southeast Asian Airlines (SEAir), said it would work on expanding its flight network and increasing payment channels to gain traction in the local market.
“In the financial year ahead, the Group expects to continue its focus on strengthening its operating cash flows and improving its financial position,” Tiger Airways said in a recent statement.
“New capacity and destinations will be introduced at a measured pace, with an emphasis to create higher frequencies on high demand routes,” it added.
Tiger Airways reported an operating profit of $12.7 million for the quarter ended March 31, 2013, which is the end of the company’s 2012-2013 fiscal year.
This was a turnaround from the operating loss of $17.2 million recorded in the corresponding period the year before.
The company’s improved financial performance came on the back of a 49.4-percent jump in group revenue to $240.6 million, from $161.1 million recorded in the January to March period of 2012.
However, Tiger incurred a $7.3-million loss from its share in the loss of its affiliate SEAir.
SEAir has a fleet of five aircraft. Its network covers 12 international and domestic routes out of Clark and Manila.
Last month, Tiger and SEAir said the group would launch this month direct flights between Singapore and Kalibo, Aklan. Aklan is the only gateway to Boracay Island that is able to accommodate international flights.
Moving forward, Tiger said it would continue its focus on strengthening its operating cash flows and improving its financial position.
New capacity and destinations will be introduced at a measured pace, with an emphasis to create higher frequencies on high-demand routes.
The Tiger group expects to take delivery of another 10 Airbus A320 aircraft during the financial year, which will bring its fleet strength to 53 aircraft by March 2014. The new aircraft will be allocated to the group’s subsidiary and associate airlines to support their growth plans.
“SEAir is working toward gaining traction in the Philippine market through network expansion, and increased distribution and payment channels,” Tiger said.
Tiger Airways Holdings, established in 2003, is the parent company of a group of budget carriers operating in Asia Pacific.
The Group consists of wholly owned Tiger Airways Singapore and Tiger Airways Australia, and partially owned Mandala Airlines and SEAir.
