Tiger Airways - Upgraded to Outperform by CIMB

CIMB upgraded Tiger Airways from a Trading Buy to Outperform after the post results briefing that took place recently.  Tiger Airways' FY12 losses totaled S$104.4mil caused by higher fuel prices, weak yield environment in Asia, and lower fleet utilisation due to the suspension in Australia.

Tiger Australia was plagued by severe fleet under-utilisation because of suspension and daily flight restrictions.  CIMB is pleased with Tiger's progress as they see a more structured organisation with clear strategies for both regional and domestic expansion.  Higher fleet utilisation is also expected as Tiger Singapore will be reducing its fleet from 21 to 19 while increasing its seat capacity by 7%. They expect losses to narrow with profits to be reported in 2nd half of FY13.