Tiger Airways Holdings Limited (Tigerair) reported profitable 3QFY15 results mainly on absence of overseas operations. Its 3QFY15 revenue increased 5.9% YoY to S$182.3m while expenses saw 1.5% decline to S$178.2m largely due to lower fuel cost, staff costs and lower capacity. This led to a positive PATMI of S$2.2m for 3QFY15 compared to net loss of S$118.5m in 3QFY14. For 9MFY15 results, its revenue dropped 13.0% to S$498.0m while expenses declined 10.7% to S$535.6m mainly due to to exclusion of Tigerair Australia that ceased to be a subsidiary since 2QFY14. As a result of the large provisions incurred in 2QFY15, its 9MFY15 bottom-line recorded S$245.4m net loss against S$127.5m net loss in

With the strengthened balance sheet on the recent rights issue, Tigerair stated it remains committed to its turnaround plan focusing around an alliance with Scoot. Pending more details from management through a conference call later in the morning, we maintain SELL but place our fair value of S$0.18 under review.

Source: OCBC Research - 26 Jan 2015