Tiger Airways has reported a profit before tax for the
thirs quarter ended 31
December 2010 of $30.2 million, an 85.3% increase over the $16.3
million profit recorded for the same quarter in the prior year.
The group recorded an 18% profit before tax margin for the
quarter.
Revenue growth of 22.2% from $139.5
million to $170.4 million was ahead of both passenger and seat
capacity growth of 13.4% and 13% respectively. Cost per
Available Seat Kilometre (CASK) excluding fuel and foreign
exchange difference reduced 3.2%. The group load factor was 88%
for the quarter.
Profit before tax for the 9
months ended 31 December 2010 was $46.8 million, an increase of
559% over the $7.1 million profit recorded in the 9 months to 31
December 2009.
“Achieving an 18% profit before tax margin
in the third quarter demonstrates our focus on delivering a
profitable and sustainable expansion of our business. By managing
to generate revenue growth ahead of seat capacity growth whilst
keeping a tight control of costs shows that we have right formula
to create shareholder returns,” said Tony Davis, President and
Group CEO. “Ancillary revenue growth of
20% on a per passenger basis reflects our team’s ongoing
innovative ambitions. During the quarter, we launched Stripes, our
membership program providing members with priority access to
promotions for an annual membership fee. We will continue to look
at ways to generate further growth in ancillary income going
forward.”
Mr. Davis added, “From our Singapore base, new services
were launched to Trichy and Trivandrum in India and to Manila
during the quarter, whilst in Australia we rolled-out our third
domestic base at Avalon Airport. In December we established our
Airline Partner Programme with South East Asian Airlines (SEAir)
based out of Manila (Clark), which will provide significant
operating cost savings going forward. We are exploring
opportunities to expand this partnership on routes beyond the
current Manila (Clark) - Singapore route.”
The recent weather events on the
east coast of Australia will have an adverse effect on earnings
for Tiger Airways Australia in the fourth quarter. As a
consequence, plans to increase the fleet beyond the current 10
aircraft in Australia have been deferred until April 2011. Tiger
Airways Australia will increase its seat capacity by at least 20%
for the period April to October 2011.
Given the
growth opportunities in Asia, Tiger Airways Singapore is aiming to
increase its capacity by 41% year-on-year for the period April to
October 2011.
The company is also maintaining its plan
to grow its fleet by 40%, from 25 aircraft currently to 35
aircraft by March 2012.
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