Maiden profit for Tiger Airways
Published: 13 Aug 2008: Budget carrier Tiger Airways has reported an annual net profit of $S37.8 million. This compares with a net loss after tax of $S14.3 million 12 months ago.
As per the information available, the airline has turned in its first set of profits since taking to the skies four years ago.
Total revenues increased by 56 percent to $S271 million underpinned by Tiger´s expanding network and business. Cash balances increased more than 400 percent, from $S3.9 million to $S19.6 million .
The airline, which is 49 percent owned by Singapore Airlines, shared that it was able to cope with higher fuel costs by hedging against price rises and maintaining disciplined cost control.
"Even with the challenging market conditions and current oil prices we remain confident about the long-term success of both our Asian- and Australian-based airlines," said Tiger Airways´ chief executive Tony Davis.
"Clearly oil has been a challenge for all airlines. But... we´re not seeing the impact that some other airlines are seeing in Europe and North America of reducing demand," Davis said.
According to theaustralian.news.com.au, Davis said the airline´s first profit three years after start-up came as it achieved economies of scale that allowed it to offset low fares. "I think a three-year period from start to profitability is reasonable and certainly that was our target," he reportedly Davis said.
"And we´re delighted that Tiger Singapore has delivered a very robust set of figures for the last financial year, which was it´s third full year of operations. I think the other thing to reinforce is that Tiger Singapore is an entirely independent carrier," he reportedly said. "Unlike the relationship Jetstar has with Qantas, we didn´t benefit from passengers being forcibly moved from one airline to the other, we didn´t inherit routes and we don´t network plan our services with (majority shareholder) Singapore Airlines or anyone else."
Tiger Airways did not give net profit figures for the fiscal first quarter to June, but said there was a 57.8 percent increase in revenue, a 64.9 percent rise in seat capacity and that passenger numbers climbed 73.7 percent.