Singapore's Tiger Airways cuts losses by 93%

http://www.bbc.co.uk/news/business-34612508

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Tiger Airways Holdings has reported a S$12.8m ($9.2m; £6m) net loss for the quarter ending September, a 93% drop from losses a year ago.

The budget carrier said the improvement was largely due to selling its 40% stake in Tigerair Australia. The stake in the loss-making subsidiary was sold for $1 to Virgin Australia in 2014.

Group revenue for the quarter was up 12.8% to S$167m.

Tiger Airways is majority owned by flagship carrier Singapore Airlines.

Chief executive Lee Lik Hsin said: "We are encouraged by the narrowing of losses in a seasonally weak second quarter."

Tiger Airways reported a loss of S$182.4m in the July to September quarter last year.

'Peak quarter'

The improved earnings came as airlines around the globe benefit from the current low fuel prices helping profit margins.

The results showed that traffic and passenger numbers also saw a slight increase.

Tigerair recorded additional income from leasing aircrafts to its former Australian subsidiary and to Tigerair Taiwan, an affiliate majority-owned by China Airlines.

For its outlook, the airline pointed to the next months as a peak quarter which traditionally sees increased travel during the holiday season.