TIGER Airways Holdings Ltd, the discount carrier part-owned by Singapore Airlines Ltd, slumped by a record after foreign exchange losses damped profit in the first quarter, reported Bloomberg News.
The company fell as much as 7.1 per cent to S$2.08 and changed hands at S$2.13 at 9.03am on the Singapore stock exchange. The stock had jumped 4.7 per cent in the last two days.
Tiger Air, which has operations in Singapore and Australia, posted a net income of $1.9 million in the quarter ended June. The company had a $6.3 million foreign exchange loss after the Australian currency weakened, Chief Executive Officer Tony Davis said on Friday.
'The results were below ours and consensus estimates' because of the foreign exchange losses, Melissa Yeap, an analyst at DMG & Partners Securities, wrote in a note, without providing her specific forecast. 'We expect earnings in the second half to jump driven by addition of its seven new aircraft.'
Mr Davis said he expects foreign exchange losses to narrow, 'if not completely rectified,' as the Australian dollar strengthens in the current quarter. The carrier's businesses in Singapore and Australia performed better than the year before, Mr Davis said, declining to elaborate.
Tiger Air had $200 million in cash at the end of June, according to presentation slides released on Friday.
