
Are better times ahead for floundering Tigerair?
Not in the near term, analysts say.
Tigerair had managed to stave off trouble with its $230m rights issue, but the path to profitability is a long way away for the struggling carrier.
According to OCBC, the stronger balance sheet and cash balance will help Tigerair in its turnaround strategy through alliance with Scoot. However, its impact will only be visible from at least 2HFY16 onwards.
“In the near-term, declining oil prices will help in improving profitability. However, we think the depressed yields due to overcapacity in the region will continue to mute its earnings in 2015, negating the effects of lower oil prices,” stated OCBC.