Tiger

Tiger: 4Q13 saw a net loss of $15.4m despite a 49% y/y improvement in revenues to $240.6m. The loss was mainly due to a one-off impairment and other non-recurring losses of SGD8m. Adjusted loss of $7m was 56% lower than 4Q12. This brings its FY13 losses to $45m, compared to a loss of $104m in FY12. The low-cost carrier has seen its Singapore operations improve with a 38.1% improvement in passenger traffic (RPK) in 4Q13, as well as a higher load factor 84.6%. Consequently, yields improved by 7.5%. On its outlook, Tiger Singapore is expected to continue to perform strongly as it consolidates its competitive position by offering new routes and increased frequencies. It will increase its capacity by about 25% by the end of FY14. The group plans to add 10 planes in FY14 to its present fleet of 43 aircraft. Of these, five will go to Singapore and at least five of the 10 will be on lease. HSBC has an OVERWEIGHT rating on Tiger, TP of $0.80.