Tiger Air Earnings Hit By Australian Ban
Singapore budget carrier Tiger Airways said on Thursday financial results in the 2011-12 financial year will be significantly affected by its Australian operations, which have been grounded due to safety measures, and the high price of jet fuel.
It said the Australian operations were likely to report a net loss for the financial year ending March.
Tiger Airways, which is a third owned by Singapore Airlines, said it swung to a net loss of SGD$20.6 million (USD$17.2 million) in the first quarter, compared to a net profit of SGD$1.9 million in the same period a year earlier.
"The group's financial performance (for the full year) will be significantly affected by the expected losses of Tiger Airways Australia, while being exposed to high and volatile jet fuel prices," said Tiger in a statement.
The airline said its Australian operations was preparing for a re-launch, which will occur once Australia's Civil Aviation Safety Authority (CASA) was satisfied that it had met certain conditions.
CASA last month imposed a ban on all domestic flights by Tiger citing "serious" safety issues.