SINGAPORE - Budget carrier Tigerair has reported an improved performance in the third quarter of its 2016 financial year on the back of lower fuel prices.
In a statement on Friday (Jan 22), Tigerair revealed that it had posted a net profit of $6.8 million in the three months ending Dec 31. This is a 209 per cent improvement over the $2.2 million net profit that the airline had recorded in the corresponding quarter of the previous year.
Operating profit rose to $10 million from $4.1 million in the third quarter of 2015.
Tigerair also revealed that its group revenue increased by 1.5 per cent to $187.4 million, driven mainly by higher lease rental income.
Meanwhile, lower fuel expenses meant that group expenses fell by 1.8 per cent to $177.3 million. The carrier noted that this was partially eroded by higher maintenence charges, higher aircraft rentals and the appreciation of the US Dollar against the Singapore Dollar.
From April to December 2015, the Tigerair group recorded an operating profit of $200,000, a turnaround after an operating loss of $37.6 million in the previous year. Net loss in the same period also narrowed from $245.4 million to $7.7 million.
Tigerair CEO, Mr Lee Lik Hsin, said: "The low fuel price environment has helped our third quarter performance, and we expect to continue benefitting from it."
The airline added that it will continue to deepen its collaboration with Scoot and the rest of the Singapore Airlines Group for future sustainable growth.