Tiger Airways Holdings Limited has reported that
profit before tax, excluding foreign exchange differences, for the
quarter ended 30 June 2010, the first quarter of the FY2010/11
financial year, was $7.6 million, a $20.7 million improvement over
the $13.1 million loss recorded for the same quarter in the
The reported profit before tax for the quarter
ended 30 June 2010 was $1.3 million, a $7.4 million improvement
over the $6.1 million loss recorded in the quarter ended 30 June
2009. The quarterly result was supported by revenue growth of 45%
from $100.1 million to $145.1 million, resulting from a 39%
increase in passenger numbers. Growth in passenger volume
outstripped seat capacity growth of 36.9%, leading to a 1.3
percentage point improvement in load factor to 84.2%.
Unit revenue as measured by Revenue per
Available Seat Kilometre (RASK) increased 24.2% over the same
quarter last year, signalling strong revenue momentum particularly
from our Singapore business, shorter average stage length and the
continuing maturity of the airlines in the group.
Due to a 14.9% reduction in average sector
length in the period, unit cost as measured by Cost per Available
Seat Kilometre (CASK) was 16.6% higher than the previous year.
CASK excluding fuel and foreign exchange differences (controllable
CASK) increased just 5.5% over the previous year despite the
significant reduction in average sector length.
“Going forward, we are capitalising on the
strong economic growth and
visitor arrivals data out of Singapore by committing to a 40%
increase in the Tiger Singapore fleet over the next six months.
Four additional aircraft will support our increased frequencies to
Guangzhou, Hong Kong, Jakarta, Macau and Shenzhen, and our new
daily service between Singapore and Taipei,” said Tony Davis,
President and Group CEO. “In addition, Tiger Airways has signed a
memorandum of understanding to form a new low fare airline in
Thailand with Thai Airways International. The new airline, known
Thai Tiger is expected to commence services in the first
quarter of 2011.”
Recently, Tiger Airways introduced two new
additional ancillary products; a priority boarding service called
boardmefirst in Singapore, whilst the check-in process has
been improved in Australia by offering web-based check-in
facilities to those passengers travelling without baggage.
Over the coming months, Tiger’s focus will be to
continue to lower the cost base, enhance the ancillary revenue
stream and progress with establishing Thai Tiger.
To support its growth plans, Tiger has an
additional 9 new Airbus A320 aircraft scheduled for delivery
during the financial year ending 31 March 2011, and it plans to
return 2 of its current aircraft to their owner at the end of
their respective leases. The fleet will therefore grow by a total
of 7 additional aircraft, bringing the fleet size to 26 aircraft
by March 2011.
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