Budget carrier Tiger Airways has warned of a significant net loss for the current financial year due to the temporary suspension of its operations in Australia earlier this winter.
Shares of the Singapore Airlines controlled low cost carrier fell 3.7 per cent on Tuesday after the airline reported a S$49.9 million (US$38.7 million) net loss for the second quarter, which ended September 30.
The airline reported a S$14.1 million profit over the same period last year. Tiger said passenger numbers were down 23.2 per cent this year from a year ago.
CASA suspended Tiger’s Australia services on July 1 over safety concerns. The airline was cleared to resume flying six weeks later but was ordered to significantly scale back its operations.
Tiger said high fuel costs were also to blame for the losses.