Tiger

Tiger: After a consecutive six-quarters of losses, Tiger Airways announced a profit for 3Q13 yesterday. Improved Passenger traffic and utilization of its fleet, brought Tiger to a net profit of $2m vs a loss of $17.4m for 3Q12. Note that the Sept-Dec quarters are traditionally the strongest for the air travel industry. The Group saw revenue jump 47.1% y/y (+25.9% q/q) to S$247.7m, outpacing the growth in operating expenses, which grew 26.7% y/y to S$229.8m (+12.4% q/q). The turnaround for the Group was largely attributed to the stellar performance by Tiger Singapore during the quarter as Tiger Australia continued to suffer yield deterioration from intense competition. However, Tiger (32.7%-owned by SIA), still expects to report a net loss for FY12 with 9M12 currently at $30.0m, comparing to a net loss of $87.9m for 9M11. OCBC maintains BUY and raise their TP to $0.86.