Written by Bloomberg
Tiger Airways Holdings, the budget carrier part-owned by Singapore Airlines, posted a first-quarter profit after it flew more passengers amid a rebound in air travel.
Net income totaled $1.9 million in the three months ended June, compared with a loss of $6.0 million a year earlier, the company said in a statement to the Singapore stock exchange today. Revenue increased 45% to $145.1 million in the quarter.
Passenger numbers jumped 39% in the quarter after Chief Executive Officer Tony Davis added new destinations and accelerated plane deliveries. The company this week announced setting up a budget carrier in Bangkok in partnership with Thai Airways International Pcl to challenge Southeast Asia’s largest discount carrier AirAsia and Jetstar for leisure travelers.
The carrier, with operations in Singapore and Australia, will have a fleet of 26 planes by March 2011 from 19 currently, according to today’s statement. The carrier filled 84.2% of its total available seats in the quarter.
Tiger Air jumped 4.2% to $2.24 at the close of trading in Singapore today. The results were released after the market closed. Of seven analysts tracked by Bloomberg over the past 12 months, four have a “buy” rating, one says “sell,” while the remainder recommend that investors “hold” the stock.
Singapore Air has a 34.4% stake in the company, according to Tiger Air’s website.
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