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Tiger Airways posts Q2 loss of S$182m on weak Singapore performance
TIGER Airways on Friday reported a net loss of S$182.4 million for its second quarter ended Sept 30, 2014. This was a reversal from a net profit of S$23.8 million a year ago.
This translated to losses per share of 18.47 Singapore cents, versus earnings per share of 2.42 Singapore cents a year ago.
Total revenue fell 10.5 per cent to S$146.7 million, mainly due to the weaker operating performance of Tigerair Singapore, it said.
"Tigerair Singapore recorded an operating loss of S$31.3 million for the quarter compared to S$18.1 million a year ago.
"Revenue decreased by 4.9 per cent to S$143.9 million on the back of a rationalisation of Tigerair Singapore's network. The resulting improvement in load factor was nevertheless offset by lower yields.
"Expenses increased by 3.4 per cent to S$175.2 million on higher unit cost," it noted.
In total, the group recorded one-off accounting provisions of S$161.1 million, mainly comprising a S$99.3 million provision for "onerous" sublease of surplus aircraft, as well as S$59.8 million for the divestment of Tigerair Australia.
The airline also incurred some foreign exchange losses from the appreciation of the US dollar against the Singapore dollar.