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Tiger bolstered by cheaper fuel, higher lease rental income in Q3

Friday, January 22, 2016 - 17:44
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SINGAPORE'S budget carrier Tiger Airways on Friday reported a net profit of S$6.78 million for Q3 FY2016, up from S$2.19 million in the year-ago period, boosted by cheaper jet fuel and a slight increase in revenue.

SINGAPORE'S budget carrier Tiger Airways on Friday reported a net profit of S$6.78 million for Q3 FY2016, up from S$2.19 million in the year-ago period, boosted by cheaper jet fuel and a slight increase in revenue.

Group revenue edged up 1.5 per cent to S$187.38 million, thanks to higher lease rental income from aircraft and engine leasing arrangements with Tigerair Australia and Tigerair Taiwan. This was partially offset by a decline in revenue from airline operations in Singapore as it scaled back capacity by 1.6 per cent.

For the quarter, yields fell 1.4 per cent while load factor improved 1.1 percentage points to 83.1 per cent.

Earnings per share for the quarter came to 0.27 Singapore cent, up from 0.18 Singapore cent previously.

"The group expects macroeconomic conditions to remain uncertain and surplus capacity in the industry will continue to exert downward pressure on yields in the near term," it said. "Nevertheless, the low fuel price environment offers some respite and the group will continue to work hard to optimise its loads and yields."

Singapore Airlines - which owns a majority stake in Tiger - is trying to delist and privatise the budget carrier.