Tigerair’s net profit more than triples to $6.8m in Q3

Thanks to higher lease rental income.

Low-cost carrier Tigerair reported a net profit of $6.8 million in the third quarter, more than triple its net profit of $2.2 million in the same period last year.

Operating profit rose to $10.0 million for 3QFY16, compared to $4.1 million in 3QFY15. Group revenue increased by 1.5% to $187.4 million mainly driven by higher lease rental income from aircraft and engine leasing arrangements with Tigerair Australia and Tigerair Taiwan.

This was partially offset by decline in revenue from airline operations in Singapore following a capacity decrease of 1.6%. Yields fell by 1.4% while load factor was 83.1%, an improvement of 1.1 percentage points.

Group expenses decreased by 1.8% to $177.3 million mainly due to lower fuel expenses.

However, the benefit of lower fuel price was partially eroded by higher maintenance charges, higher aircraft rentals and the appreciation of USD against SGD. In addition, changes in accounting estimates for maintenance provisions and aircraft depreciation policy resulted in $3.8 million increase in aircraft depreciation.

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