Tiger declares S$9.9m group profit
Tiger Aviation, parent company of Tiger Airways and Tiger Airways Australia, has declared a full year group consolidated profit after tax of S$9.9 million for the financial year 2007-08 which ended on 31 March 2008.
Key financial highlights for the FY 07/08 year included;
• Group consolidated profit improved by S$24.7m from a loss of S$14.8m to a profit of S$9.9m.
• The total fuel spend for the year increased by 66% to S$123m and the average price of jet fuel versus prior year increased by 17% from US$80 to US$93 per barrel
• Earnings before interest, taxation, depreciation and aircraft rentals (EBITDAR) increased by 134% from S$26.7m to S$62.6m.
• Year end cash balances increased by more than 750% from S$3.9m to S$33.4m
• No increase in shareholders’ investment which remains at S$24.4m
• FY07-08 net profit for Tiger Airways Singapore of S$37.8m
• Total pre-operating (start-up) costs for Tiger Airways Australia of A$7.9m have been fully expensed including set up of 12 airport operations across Australia
• Tiger Airways Australia operating loss of A$12.2m for year ending 31 March 2008, below initial forecast and all operations have been fully funded by positive cash-flow.
“We are delighted with the performance of both of our airlines during the last financial year," declared Tony Davis, group CEO and president of Tiger Aviation . "Despite difficult trading conditions, which saw our total fuel spend increase by 66%, we have created a solid foundation for future regional growth by re-investing earnings in new opportunities, specifically the successful on-time, under budget launch of Tiger Airways Australia. Our employees in both Singapore and Australia have done a great job and we are confident that our low fare model is the right product for our millions of customers across the Asia Pacific region.
“It is a testament to the strong business model developed by the Tiger Airways companies that even with the surge in oil prices and the additional complexities of operating two separate airlines, our company has declared a consolidated group profit after only three years of operation and having fully expensed the start-up costs of our new airline in Australia – this is well ahead of the time taken by other leading global low fare airlines to reach profitability”.
Tiger Aviation has also given an update on its operating performance for the Q2 of FY08-09. Compared with the year before the group achieved a solid performance in a challenging operating environment with passenger growth of 58.8%; capacity growth of 61.8%; and gross revenue growth of 59.0%
Davis comented, “It is clear from these figures that Tiger Aviation is building a firm platform from which to develop our businesses across the entire Asia Pacific region and we look forward to continued strong passenger growth in the current financial year”.