AFP - Thursday, August 7
SINGAPORE, Aug 7, 2008 (AFP) - Budget carrier Tiger Airways said
Thursday it had booked a net profit of 37.8 million Singapore
dollars (27.33 million US) in the financial year to March, despite
higher oil prices and stiff competition.
The carrier said the earnings from its Singapore operations
reversed a loss of 14.3 million dollars in the previous fiscal year
and met a pledge to be profitable within its third year of
operation.
Tiger, 49 percent owned by Singapore Airlines, said revenues
rose 56 percent to 271 million dollars. It said it had a cash
balance of 19.6 million dollars.
The firm said operations from Singapore contributed the profits
as its new Australian domestic service was still expanding.
"Even with the challenging market conditions and current oil
prices we remain confident about the long-term success of both our
Asian and Australian based airlines," said Tiger chief executive
Tony Davis.
"We continue to see strong demand for our low fares and we are
committed to continued growth as we expand our operations in both
Australia and Singapore."
Tiger Airways did not give net profit figures for the fiscal
first quarter to June, but said there was a 57.8 percent increase
in revenue, a 64.9 percent rise in seat capacity and that passenger
numbers climbed 73.7 percent.
Davis said the airline was able to cope with higher fuel costs
by hedging against price rises and maintaining disciplined cost
control.
"Clearly oil has been a challenge for all airlines. But... we're
not seeing the impact that some other airlines are seeing in Europe
and North America of reducing demand," Davis told reporters.
He said the firm was making sure it could cope with higher oil
prices, but stood ready to take advantage of a correction in crude
costs.
Oil prices were trading below 120 dollars a barrel on Thursday
after falling from all-time peaks above 147 dollars last month.
Tiger Airways connects Singapore with destinations in Southeast
Asia, China, Australia and India.