SINGAPORE: Budget carrier Tiger Airways on Friday (Jan 22) posted a net profit of S$6.8 million for the three months to Dec 31, 2015, in a sign that business is turning around.
The net profit for the fiscal third quarter was a marked improvement over the S$2.2 million earned a year ago. It also marked a reversal of the S$12.8 million net loss reported for the second quarter ended Sep 30.
Tigerair's revenue for the quarter rose 1.5 per cent to S$187.4 million, while its fuel costs fell by a third to S$43.5 million.
Commenting on its prospects, Tigerair said economic conditions remain uncertain. Surplus capacity in the industry will continue to exert downward pressure on yields in the near term, it added.
The budget carrier also said, however, that low fuel prices offered some respite. Tigerair is current the subject of a takeover bid by majority shareholder Singapore Airlines, which wants to take the budget carrier private.