SINGAPORE (Reuters) - Singapore’s Tiger Airways Holdings Ltd TAHL.SI warned of a bleak outlook as it reported a huge increase in its fourth-quarter net loss after the airline was hurt by losses in its joint ventures and exceptional charges.
Underscoring the pressure the budget airline is facing from big-spending rivals, Tiger said on Friday it was re-assessing its investment in Tigerair Mandala, the group’s Indonesian venture, confirming a Reuters story in March.
Tiger reported a net loss of S$95.5 million ($76.25 million) in the quarter ending March, up from a loss of S$15.4 million a year ago for the same period. It said the higher losses were largely attributed to S$52.4 million in exceptional charges and S$21.5 million in losses of associate and joint ventures.
“Due to an industry over-supply of capacity, Tigerair continues to operate in a challenging business environment. It is expected that yield and load factors will remain under pressure,” said Tiger, which is about 40 percent owned by Singapore Airlines Ltd (SIAL.SI).
“Given uncertain market conditions, the group is reviewing its investment in Tigerair Mandala.”
($1 = 1.2524 Singapore dollars)
Reporting by Anshuman Daga; Editing by Matt Driskill