TIGER Airways has posted a first-quarter loss of S$20.6 million (US$17 million), compared to a net profit of S$1.9 million a year ago.
The carrier attributed the dismal result to a combination of a seasonally weaker first quarter, volatile fuel prices and disruptions to its Australian operations due to the Chilean volcanic ash cloud in June (TTG Asia e-Daily, June 21).
Australia’s Civil Aviation Safety Authority (CASA) has grounded Tiger Airway’s Australia operations since July 2 over safety concerns (TTG Asia e-Daily, July 7), a move which has so far cost the airline S$17.7 million in sales and S$1.7 million in ancillary revenue.
The financial impact of the grounding will only be reflected in Tiger Airway’s second quarter results.
Tiger Airways predicted that the first quarter loss, coupled with the suspension of domestic services in Australia for more than a month, would most likely result in its Australia operations reporting a net loss for this financial year.