Falling fuel prices sent earnings soaring at Tigerair for the third quarter, it reported yesterday.
Net profit for the three months to Dec 31 shot up 210 per cent to $6.78 million, while revenue was up 1.5 per cent to $187.38 million. Total spending dipped 1.8 per cent to $177.3 million.
Chief executive Lee Lik Hsin said in a teleconference yesterday: "The low fuel price environment has helped our third-quarter performance and we expect to continue benefiting from it."
Fuel prices are at their lowest in more than 10 years.
Tigerair recorded an operating profit of $200,000 for the nine months to Dec 31, reversing a $37.6 million loss a year earlier. Net loss in the same period narrowed to $7.7 million, compared with the previous year's net loss of $245.4 million.
Quarterly earnings per share rose to 0.27 cent from 0.18 cent a year earlier, while net asset value per share was 8.07 cents as at Dec 31, down from 8.63 cents as at March 31 last year.
AT A GLANCE
NET PROFIT: $6.78 million (+210%)
REVENUE: $187.38 million (+1.5%)
Despite the respite from lower fuel prices, there are challenges, Mr Lee said. Macroeconomic conditions are expected to remain uncertain and surplus capacity in the industry will continue to exert downward pressure on yields in the near term, he added.
Tigerair said it will continue to work closely with the Singapore Airlines (SIA) group to drive synergies and efficient operations.
SIA, which has made a takeover offer for Tigerair, has given the budget carrier's shareholders until Feb 5 to decide if they wish to sell.
In an update last week, SIA said it now owns, controls or has agreed to acquire 79.22 per cent of Tigerair's shares. SIA needs to take this to 90 per cent, after which the intention is to delist Tigerair to facilitate closer cooperation and integration with other carriers within the group, especially SIA's long-haul, low-cost arm Scoot.