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Thursday, February 21, 2013

Tiger Air off to good start for 2013: DBS Vickers


Tiger Airways’ (J7X.SG) January operating statistics showed a good start to 2013, DBS Vickers says, adding it validates its expectations for an upcoming turnaround. It notes passenger carriage grew 34% on-year, with load factors improving 9 percentage points to 84%.
It notes Tiger Singapore’s passenger carriage for January rose 23% on-year, while load factor rose 10 percentage points to 84%, adding it is utilising its fleet much more efficiently than a year earlier; “We believe Singapore operations are now well on track to remain solidly profitable at the operating level in 1Q-FY13.”
Tiger Australia’s passenger carriage rose 108% on-year with a load factor of 87%, up from 84% a year ago, it notes, adding the 9% on-month traffic increase is even more impressive as December is usually the peak traffic month and late January faced traffic disruption from Cyclone Oswald.
“Both cubs remain on a solid footing for earnings improvements in coming quarters and Tiger Airways remains on course to return to full profitability in this calendar year.” It keeps a Buy call with $0.95 target. The stock is up 0.7% at $0.745.

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