Tigerair turns a profit
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Tigerair returned to the black for the third quarter of its financial year.
The Singapore-based low-cost carrier posted a net profit of SG$2.2 million (US$1.6m) for the three months ending 31 December 2014, compared to a net loss of SG$118.5m recorded in the same period in 2013.
The result was driven by a 5.9% rise in revenues, to SG$182.3m, while expenses were reduced by 1.5% to SG$178.2m. This resulted in an operating profit of SG$4.1m, compared to an operating loss of SG$8.8m a year ago.
Lee Lik Hsin, group CEO of Tigerair, said the improved result was proof that its turnaround plan is working.
“We had to make some difficult decisions in the turnaround process. Though we are not out of the woods yet, we are encouraged by the improving financial results. We are also heartened by strong shareholders’ support of our rights issue,” said Lee.
Tigerair has sold its Philippine carrier to Cebu Pacific, while its Indonesian unit, Tigerair Mandala, has ceased operating. But it has embarked on a new Taiwanese venture with China Airlines.
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