SIA low fare subsidiary, Tiger Airways, reports annual net profit

Despite higher oil prices and stiff competition, Singapore Airlines' low fare subsidiary, Tiger Airways, has reported an annual net profit of $S37.8 million ($41.5 million).This reverses a loss of $S14.3 million in the previous fiscal year and also keeps it on track to meet its forecast to become profitable by the third year of its operation.

Tiger, 49 per cent owned by Singapore Airlines, operates services to Southeast Asia, China, Australia and, very recently, to India.

It said revenues rose 56 per cent to $S271 million ($196 million).

Without supplying net profit figures for the fiscal first quarter to June, the carrier said there was a 64.9 per cent rise in seat capacity and a 73.7 per cent rise in passenger numbers.

"Even with the challenging market conditions and current oil prices we remain confident about the long-term success of both our Asian and Australian based airlines,'' said Tiger chief executive Tony Davis.

"We continue to see strong demand for our low fares and we are committed to continued growth as we expand our operations in both Australia and Singapore.''

Davis also said the airline was coping with higher fuel cost through hedging and tight cost control. He said the airline would also be ready to take advantage of a correction in crude costs.