Tiger Air

Tiger Air: May operating data. The Group carried 461k passengers, -1% mom, and -23% yoy. Load factor was at 80%, unchg mom, but down from 83% a yr ago. Tiger Australia continues to be a drag, with growth falling 9.6% mom to 122k pax, as the unit cut back on flight frequencies. Tiger Spore growth was flattish, at +2.4% mom to 339k pax. Tiger continues to face headwinds amidst intense competition in the LCC space. Australia continues to be a difficult operating environment, with Qantas recent profit warning. Meanwhile, Tiger also faces the threat of cannibalization, with Scoot announcing just yday that it isn’t looking at long haul flights, and may potentially traverse similar routes as Tiger. Tiger shares trade at 2.1x P/B, and is loss making on a trailing 12mth basis.