SINGAPORE (dpa) – Tiger Airways on Monday reported a swing into the black in the latest quarter, a turnaround from losses that saw it replace its chief executive last year.
The budget airline made an after-tax profit of 2.2 million Singapore dollars ($1.64 million) in the last quarter of 2014, up from the loss of 118.5 million Singapore dollars ($88.1 million) in the same period the year before.
The carrier replaced chief executive Koay Peng Yan after less than two years with Lee Lik Hsin, an executive from its largest shareholder, Singapore Airlines.
It also suspended TigerAir Mandala, the airline’s foray into the Indonesian low-cost carrier market.
“We had to make some difficult decisions in the turnaround process. Though we are not out of the woods yet, we are encouraged by the improving financial results,” said Lee.
The airline attributed the improvement to a stronger yield, higher load factor and lower capacity in a region saturated with low-cost carriers.
The proliferation of budget carriers in the Asia-Pacific region has led some to comment on the risk of oversupply.