Tigerair

Tigerair: Major revenue contributor, Tigerair Singapore, recorded a staggering decline in load factor of 8.8ppts (-3.1ppts m/m) to 74.4%. This came on the back of an 8% y/y (+2% m/m) increase in traffic to 728m revenue-passenger-km (RPK), while capacity rose 20.7% (+7% m/m) to 978m available-seat-km (ASK). In Indonesia, Tigerair Mandala saw a 11.4ppts surge in load factor to 70.5% as passengers carried more than quadrupled from 39,000 to 185,000, on the back of tripling its operating fleet to nine aircraft, bringing its ASK to 390m. Tigerair Philippines booked a 20.4 ppts increase in load factor to 80.9%, as traffic improved 20% to 114m RPK as capacity lowered 10% to 141m. Passengers booked grew 35% to 124,000. On the back of this, CS have cut FY14-15 earnings on the weaker load factor, as well as pressure on yields due to competition and fleet expansion. Latest brokers' ratings as follows: CS maintains Underperform, cuts TP to $0.47 from $0.67