Tiger Airways profit up
Tiger Airways announced a group net profit after a tax of $22.7 million for the year to March 31, a $63.7 million turnaround on the $40.9 million after-tax net loss on the previous year.
"We're delighted it achieved that within its second full year of operations," said Tiger Airways president and chief executive Tony Davis.
According to Davis, Australian operations broke even on an operating level, with three profitable quarters. Net after tax profit for the airline's Australian operations is estimated at $10 million.
"There is some uncertainty around the tax amounts going forward, in terms of corporation's tax, we thought it was prudent to recognise half at this point and half in future years towards future profitability, "said Davis.
Tiger has reported a 28.6 per cent growth in revenue from $305 million to $392 million, 43.5 per cent increase in passenger volume, and 5.7 per cent growth in load factors over the past year.
Tiger was launched in September 2004 and flies from Singapore to destinations across Asia. It has expanded into Australia, offering domestic flights.
"We have clearly succeeded with our pure low-cost model.... We are well positioned to take advantage of growth opportunities in the region," Davis said.
He said the airline, in which Singapore Airlines has a 34.4 per cent stake, would later this year expand its services from Singapore to India and within Australia, where it has domestic operations.