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Tigerair filled higher proportion of seats in May

Loss-making Singapore budget carrier Tigerair reported an improved performance in May as it attracted more passengers and filled a higher proportion of its seats.

SINGAPORE: Loss-making Singapore budget carrier Tigerair reported an improved performance in May as it attracted more passengers and filled a higher proportion of its seats.

Tigerair, whose biggest shareholder is Singapore Airlines, said the number of passengers carried by its Singapore unit grew 17.7 per cent year-on-year to 473,000 last month -- exceeding the capacity increase of 16.0 per cent.

Consequently, its passenger load factor improved by 0.9 percentage point to 84.9 per cent.

Tigerair Singapore's passenger load factor for the 12 months to May was, however, 5.6 percentage points lower at 78.4 per cent, as the 15.7 per cent rise in passenger numbers failed to keep track with the capacity increase of 23.6 per cent.

Following years of explosive growth, budget carriers in Southeast Asia are now grappling with overcapacity as deliveries accelerate and airlines expand into each other's markets. 

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