Tiger Airways Holdings has recorded a S$14.1m (A$11.3m) net profit for the quarter ending December 31, with CEO Tony Davis noting that its Australian operations have now been profitable for two quarters.
The profit, which was a turnaround from the S$7.7m (A$6.2m) loss reported during the previous corresponding period, came on the back of a 29 per cent growth in revenue to S$139.5m (A$111.5m) as passenger numbers increased by 54 per cent. Total unit costs were down by 16 per cent to 3.78 Singaporean cents per kilometre, while load factor increased by five percentage points to 88 per cent.
“The result demonstrates that we have the right model in the right markets,” said Davis. “In fact, Tiger Airways Australia has been profitable for two successive quarters, proving that our Australian business has exited the start-up phase at a faster pace compared to the Singapore business, and is well positioned for growth going forward.”
The company was restrained in its outlook, choosing not to issue profit guidance, but noting that its focus will continue to be on cost reduction as it looks to an improving Asian travel market. It also noted that it would also examine opportunities to add new bases to its network.