SINGAPORE (Yosefardi) – Tiger Airways Holdings Limited has reported an operating profit of $0.6 million in the quarter ended 30 June 2016 (1QFY16), compared to an operating loss of $16.4 million recorded in the previous corresponding quarter.
Group revenue was $168.3 million or 2.0% lower than prior year, following a capacity decrease of 7.2%. The consolidation of the fleet and network led to improvement in yields of 4.7%. Load factor fell 1.2 percentage points, but remained at a healthy level of 83.5%.
Group expenses fell by 10.8% to $167.7 million compared to the same period last year. The benefit of lower fuel cost was partially offset by a $4.1 million increase in expenses arising from changes in accounting estimates for maintenance provisions and aircraft depreciation policy. Group expenses were also impacted by the stronger USD.
The Group’s net loss after tax narrowed significantly to $1.7 million, compared to a net loss after tax of $65.2 million for the previous corresponding period. The absence of shutdown costs and losses related to Tigerair Mandala contributed to this improvement in bottom-line.
At the end of the quarter, the Group generated positive cash flows of $14.4 million from core operations and remained in a net cash position.