Tiger Airways said on Friday its third quarter net profit rose 60% to $22.6 million due to stronger passenger volumes and higher average passenger fares.
Macquarie has downgraded Singapore budget carrier Tiger Airways (TAHL.SI) to “underperform” from “neutral”, and lowered its target price to $1.50 from $1.80.
Macquarie said Tiger Airways is looking fully valued compared to its peers and the firm may be more sensitive to the rise in jet fuel prices.
Tiger Airways (J7X.SG) is +1.1% at $1.82, in average volume of 939,000 shares so far, as the airline’s solid December operating data fail to generate much excitement.
The carrier reported it flew 555,000 passengers in December, +22% on-year, +19.6% on-month, at an average load factor of 91%, +1 percentage point on-year.
Tiger Airways says it reported robust passenger volumes and load factors in November 2010, and further expansion of its fleet through lease extensions.
From December 2009 to November 2010, a total of 5.7 million passengers chose to fly with Tiger Airways, an increase of 34% over the 4.2 million passengers in the preceding 12 months. Average load factor for the 12-month period to November 2010 remained at 86%, an increase of 3 percentage points year-on-year.
Tiger, 33.4% owned by Singapore Airlines (SIAL.SI), has previously said that it aims to boost its fleet size to 68 aircraft by December 2015.
Tiger Airways Holdings says net net profit after tax for the quarter ended 30 September 2010 was $14.1 million, a $16.4 million improvement over the $2.3 million loss recorded for the same quarter in the prior year.
Revenue growth of 35.4% from $106.0 million to $143.5 million was ahead of passenger growth of 25.3%, resulting in a 10% net profit margin for the quarter. Growth in passenger volume outstripped seat capacity growth of 21.9%, leading to a 2.4 percentage point improvement in load factor to 87.0%.
Singapore budget carrier Tiger Airways said on Thursday it has signed a multi-million dollar financing deal with Standard Chartered Bank for pre-delivery payments (PDP) of 14 new aircraft.
“Standard Chartered Bank has been mandated to arrange and sole finance a Singapore dollar-denominated structured PDP financing arrangement for Tiger Airways,” the company said in a statement.
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Tiger Airways says it is “disappointed and surprised” that Tony Fernandes, chief executive of AirAsia Group, “has passed racial remarks against Tiger” in a Bangkok Post article published on Oct 15.
Credit Suisse starts Tiger Airways (J7X.SG) at Underperform with $1.85 target price, based on 15x FY11 P/E, according to Dow Jones.
Credit Suisse says Tiger is world’s most expensive budget carrier as stock trades at 16x FY11 P/E, 138%-166% premium to sector P/B, 41%-50% premium to sector EV/EBITDAR.
Tiger Airways (J7X.SG) off 2.0% at 2-week low of $2.00 as budget carrier reveals it was forced to cancel number of flights last weekend due to grounding of 2 planes following technical problems, says Dow Jones.
“Given the tight scheduling and high utilisation of planes for budget carriers, planes that are out of action will have a much more severe impact compared to the full-service carriers,” says DMG analyst Melissa Yeap.
Tiger, 49% owned by Singapore Airlines (SIAL.SI), confirmed in a statement that a number of cancellations occured last week as a result of the knock-on effects of two aircraft being grounded.
Shares of Singapore budget carrier Tiger Airways <TAHL.SI> fell as much as 3.9% in early trade on Monday after a local newspaper reported that the firm had cancelled about 40 flights over a four-day period.
At 9:23 a.m., Tiger Airways shares were trading at $2 on a volume of 760,000 shares.
CLSA starts Tiger Airways (J7X.SG) at Outperform with $2.46 target price, says Dow Jones.
CLSA says industry fundamentals supportive of budget carrier’s growth, with Asia offering airlines like Tiger large under-served population, rising incomes, improving infrastructure.
"Tiger is a focused company providing low fares to entice consumers, and like the cinemas is selling high-margin services to enhance profitability," says research house.
Forecasts 3-year EPS CAGR of 43%. Says Tiger’s focus on cost control bodes well for bottomline.
Shares off 0.9% at $2.15.
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Tiger Airways (J7X.SG) +1.0% at $1.97, unfazed by budget carrier’s latest operating data showing on-month decline in August performance; load factor off 3.4% at 86%, while passenger volume off 15.5% at 442,000, according to Dow Jones.
Tiger Airways says it reported strong passenger volumes and load factors in July 2010. The number of passengers in July grew 42% over last year to 523,000. The average load factor across both airlines in Asia and Australia for the month was up 4 percentage points to 89%.
From August 2009 to July 2010, a total of 5.4 million passengers flew with Tiger Airways, an increase of 51% over the 3.6 million passengers who booked in the preceding 12 months.
Tiger Airways (J7X.SG) down 6.7% at $2.09 following what some analysts call dismal June-quarter results, says Dow Jones.
Low-cost carrier returned to black with $1.9 million profit in fiscal 1Q11 vs $6.0 million loss year earlier on increased travel demand, tax benefit.
But earnings sharply lower than March-quarter’s $22.3 million profit on higher operating expenses, lower ticket prices.
Tiger Airways Holdings says it posted group profit after tax of $1.9 million for the first quarter ended 30 June 2010 (1QFY2010/11), versus a loss of $6 million for the corresponding quarter a year earlier (1QFY2009/10).
The quarterly result was supported by revenue growth of 45.0% from $100.1 million to $145.1 million, resulting from a 39% increase in passenger numbers. Growth in passenger volume outstripped seat capacity growth of 36.9%, leading to a 1.3 percentage point improvement in load factor to 84.2%.
Tiger Airways Holdings says from July 2009 to June 2010, 5.3 million passengers chose to fly with the budget carrier, an increase of 52% over the 3.5 million passengers in the preceding 12 months.
Load factor for the 12-month period to June 2010 was at 85%, an increase of 5 percentage points year-on-year.
The number of passengers in June 2010 grew 39% over last year to 508,000. Load factor for the month was 86%.
Tiger Airways will release its financial results for the first quarter of the current financial year (quarter ended 30 June 2010) after close of market on Aug 5.
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Tiger Airways (J7X.SG) has rebounded after early fall, now trading at $1.76 vs early low of $1.74 (off 0.6%), but still consolidating with slight downside bias ever since coming off all-time high of $1.96 in April.
