Singapore's Tigerair makes turnaround in Q1

Singapore's budget carrier Tigerair reported an operating profit of 600,000 Singapore dollars (440,040 U.S. dollars) in the first quarter of its 2016 financial year, reversing a loss of 16.4 million Singapore dollars (12.03 million U.S. dollars) in the previous quarter, the airline has said.

Tigerair's total expenses for the first quarter ending in June fell 10.8 percent from the previous one to 167.7 million Singapore dollars (123.0 million U.S. dollars). Total revenue was 168.3 million Singapore dollars (123.4 million U.S. dollars), a 2 percent decline compared with the previous year.

The airline said Wednesday that lower expenses, partly due to a decline in fuel costs, contributed to the turnaround, although Tigerair believed this was partially offset by an increase in expenses arising from accounting changes and a stronger U.S. dollar.

After taxes, Tigerair's net loss narrowed significantly to 1.7 million Singapore dollars (1.25 million U.S. dollars), compared to the 65.2 million Singapore dollars (47.8 million U.S. dollars) loss in the previous quarter, which was partly due to the cost of shutting down Tigerair Mandala.

Passenger load factor decreased 1.2 percentage points in the first quarter, but remained at a "healthy level" of 83.5 percent, said the airline.

Tigerair also said it plans to continue exploring partnership opportunities with Scoot, Singapore Airlines' long-haul budget arm. Enditem