Tiger Airways expects 2Q losses to widen

Tiger Airways Holdings said it expects its losses to have widened in the second quarter from the first, reported Dow Jones Newswires.

For the three months ended September 30, the budget airline expects to record a net loss “markedly larger” than the $20.6 million loss posted in the first quarter this year, it said in a statement late on Friday. The carrier posted a second-quarter net profit of $14.1 million a year earlier.

Factors contributing to the expected second-quarter net loss include Tiger Air Australia’s six-week flight ban imposed in July over safety concerns, lower revenue due to reduced load factors, and higher fuel costs, the airline said.

In a separate statement today, Tiger also said it received a letter of complaint against its Singapore unit via the Civil Aeronautics Board of the Philippines.

Tiger Air said the complaint “is without merit”, and has filed a proposal to dismiss the complaint.

Also today, Tiger Air said the Australian Competition and Consumer Commission has filed a complaint over alleged inaccuracies in a marketing email sent to subscriber customers.

Its Australian unit is in consultation with authorities there on the issuance of “an appropriate corrective notice upon which the complaint will likely be resolved,” it added.