Towards Financial Freedom
TIGER AIRWAYS - Tiger Singapore back from the red
Tiger reported 1Q13 net loss of S$14m, down from $21m in the previous corresponding period. Results are within expectations. Revenue grew by a marginal 1.4% YoY on the back of higher yields (+7.8%) which were offset by a decline in capacity (-4.5%) and load factors (-2.2ppt). As expected, Tiger Australia continued to register losses of S$21m, down from S$23m a year ago. Meanwhile, Tiger Singapore has recovered from the red, posting an operating profit of S$4m after three consecutive quarters of losses, as demand catches up with capacity. Going forward, we expect Tiger Australia's losses to narrow as it has started its second base at Sydney which should allow it to gradually ramp up services to pre-groundinglevels. We are maintaining our BUY call and TP of S$0.75, pegged to 2.5x FY13F P/B.
Tiger Singapore back to profitability. 1Q13 saw Tiger Singapore recovering to post an operating profit of S$4m as demand catches up with capacity which grew by 14.3% in the quarter. Average load factor was an impressive 85%. While Singapore will not be accepting any new aircraft deliveries this year, it will continue to expandcapacity via frequency increases and addition of new routes.
Losses at Tiger Australia narrow. Tiger Australia posted an operating loss of S$21m, down from S$23m a year ago. With the launch of its second base at Sydney in July, we expect subsequent quarter losses to continue to narrow as fleet utilisation improves. Management plans to gradually ramp up services to pre-grounding levels by October 2012.
Positive progress with other cubs. Associate airline, Mandala is launching its fourth route, Jakarta-Bangkok in Aug2012 and currently operates three A320s. Tiger is in the midst of finalising its agreement to acquire a 40% in SEAir which is targeted to be completed by Aug2012. SEAir currently operates a fleet of three A320s and two A319s. and will be expanding its network to include Manila to sevendomestic cities from 31 July 2012.
Source: OSK
Tiger Singapore back to profitability. 1Q13 saw Tiger Singapore recovering to post an operating profit of S$4m as demand catches up with capacity which grew by 14.3% in the quarter. Average load factor was an impressive 85%. While Singapore will not be accepting any new aircraft deliveries this year, it will continue to expandcapacity via frequency increases and addition of new routes.
Losses at Tiger Australia narrow. Tiger Australia posted an operating loss of S$21m, down from S$23m a year ago. With the launch of its second base at Sydney in July, we expect subsequent quarter losses to continue to narrow as fleet utilisation improves. Management plans to gradually ramp up services to pre-grounding levels by October 2012.
Positive progress with other cubs. Associate airline, Mandala is launching its fourth route, Jakarta-Bangkok in Aug2012 and currently operates three A320s. Tiger is in the midst of finalising its agreement to acquire a 40% in SEAir which is targeted to be completed by Aug2012. SEAir currently operates a fleet of three A320s and two A319s. and will be expanding its network to include Manila to sevendomestic cities from 31 July 2012.
Source: OSK
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