Singapore-based Tiger Airways has managed a significant year-on-year turnaround in financial performance as the airline posted a $S28.2 million net profit for fiscal 2010.

Published: 14 May 2010

Singapore-based Tiger Airways has managed a significant year-on-year turnaround in financial performance as the airline posted a $S28.2 million net profit for fiscal 2010.

The peformance marked a $79.0 million turnaround compared to the previous financial year.

Operating profit for the year ended 31 March 2010 was $28.0 million, a $75.5 million turnaround as compared to the year ended 31 March 2009.

The strong annual result was supported by revenue growth of 28.6 percent from $378.0 million to $486.2 million as a result of a 53.8 percent increase in passenger numbers. Growth in passenger volume outstripped seat capacity growth of 43.5 percent, leading to a 5.7 percentage point improvement in load factor to 85.1 percent.

Tiger Airways Singapore recorded its third straight year of operating profit, while Tiger Airways Australia achieved breakeven operating result in the second full year of trading.

“We have clearly succeeded with our pure low cost model – growing profits by relentlessly reducing costs and offering the lowest fares possible. Controllable costs per seat reduced 15.1 percent and average passenger fares reduced 22.2 percent compared to the previous year,” said Tony Davis, president and Group CEO.

Ancillary revenues comprise 20 percent of total revenues, according to the airline.

Other highlights were as follows:

• Cost/Seat = $80/seat (down 25 percent)
• Total Revenue/Pax = $99/pax
• Ancillary Revenue = $19/pax
• Fare Revenue = $80/pax
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