Singapore’s Tiger Airways Holdings reported a wider loss in the quarter ended June, hurt by one-time costs related to the shutting down of its Indonesian venture.
Tiger said on Thursday its first-quarter net loss reached $65.2 million from $32.8 million a year earlier. The share of loss at P.T. Mandala Airlines amounted to $35.3 million in addition to a $14.6 million provision for Mandala’s shutdown costs as it stopped operations on July 1.
Last month, Tiger, 40 percent-owned by Singapore Airlines, said it was shutting its money-losing Indonesian operations, a casualty of intensifying competition in Southeast Asia’s largest domestic airline market.
“I believe that our numbers are basically representative of what’s happening in the industry,” said Lee Lik Hsin, Group CEO of Tiger, who was a nominee from SIA and became Tiger’s CEO in May.
Tiger said its Singapore unit “continues to operate in a challenging environment due to persistent oversupply of capacity in the region.”
Tigerair Singapore reported an operating loss of $19.8 million in the first quarter versus an operating profit of $5.9 million a year earlier. Passenger yields fell 11.5% in the latest quarter.
Tiger is still looking to place its surplus aircraft, four of which were returned after Mandala’s operations ended and another eight it had previously announced plans to ground.
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