Tiger Airways

Tiger Airways: 1Q13 results in-line, with Co. reporting a substantially lower net loss of $13.7m for th1Q13 vs a loss of $20.6m YOY, as its SG unit remained profitable and its Aus unit started showing sequential improvement. The budget carrier group recorded revenue of $181.3m for the qtr, which was up 1.4% YoY. The 8% improvement in yield was partially negated by a 5% decrease in capacity (measured in available seat kilometres) and a two percentage-point drop in load factor. The average load factor of the group for the qtr was 83% as Tiger SG filled 85.1% of its seats, while in Aus the load factor was 77.4%. Grp expenses for the qtr went up slightly to $193.1m due to fleet expansion, but this was mitigated by lower fuel cost and airport and handling cost. Average fuel price declined one per cent year on year. Overall, the group reported a 19% fall in passenger carriage vs a capacity increase of 34%. CEO add that Tiger Aus has also made good progress since the hiatus in services a yr ago and have been rebuilding the business with a strong focus on safety, operational excellence, customer service and profitability.Turning to its new ventures closer to home, add that Mandala Airlines was expanding its presence in the region and would be launching its fourth route, Jakarta-Bangkok, next mth. Ratings as follow: CIMB maintains OutPerform with $0.90 TP.