from peanuts.aero
"Tiger Aviation, the company that operates Tiger Airways and Tiger Airways Australia, has reported (28-Nov-08) a full year group consolidated profit after tax of SGD9.9million for the financial year 2007/08 that ended on 31-Mar-08.
Key financial highlights for the FY 07/08 year included;
• Group consolidated profit improved by SGD24.7million from a loss of SGD14.8million to a profit of SGD9.9million.
• The total fuel spend for the year increased by 66% to SGD123m and the average price of jet fuel versus prior year increased by 17 % from USD80 to USD93 per barrel
• Earnings before interest, taxation, depreciation and aircraft rentals (EBITDAR) increased by 134 % from SGD26.7million to SGD62.6million.
• Year end cash balances increased by over 750 % from SGD3.9million to SGD33.4million
• No increase in shareholders’ investment which remains at SGD24.4million
• FY07/08 Net Profit for Tiger Airways Singapore of SGD37.8million
• Total pre-operating (start-up) costs for Tiger Airways Australia of AUD 7.9million have been fully expensed including set up of 12 airport operations across Australia
• Tiger Airways Australia operating loss of AUD12.2million for year ending 31-Mar-08, below initial forecast and all operations have been fully funded by positive cash-flow.
Tony Davis, Group CEO and President of Tiger Aviation said “We are delighted with the performance of both of our airlines during the last financial year. Despite difficult trading conditions, which saw our total fuel spend increase by 66%, we have created a solid
foundation for future regional growth by re-investing earnings in new opportunities, specifically the successful on-time, under budget launch of Tiger Airways Australia. Our employees in both Singapore and Australia have done a great job and we are confident
that our low fare model is the right product for our millions of customers across the Asia Pacific region”.
Davis continued “it is a testament to the strong business model developed by the Tiger Airways companies that even with the surge in oil prices and the additional complexities of operating two separate airlines, our company has declared a consolidated group profit after
only three years of operation and having fully expensed the start-up costs of our new airline in Australia – this is well ahead of the time taken by other leading global low fare airlines to reach profitability”.
The company’s airlines continue to generate strong cash-flows with cash balances increasing during the period from SGD3.9million to SGD33.4million. During the period the company secured deliveries for a further 50 Airbus A320 aircraft and 2 Airbus A319s bringing the total aircraft commitment to 72.
In addition to announcing the Tiger Aviation group profit of SGD9.9million for financial year 07/08, Tiger Aviation also gave an update on its operating performance for the Q2 of FY08/09. Compared to the year before the group achieved a solid performance in a challenging operating environment with :
- Passenger growth of 58.8%
- Capacity growth of 61.8%
- Gross revenue growth of 59.0%
Davis said “it is clear from these figures that Tiger Aviation is building a firm platform from which to develop our businesses across the entire Asia Pacific region and we look forward to continued strong passenger growth in the current financial year”."