Tiger Airways says its Australian business is expected to post yet another full year loss after the aviation regulator grounded its entire domestic fleet in July this year on safety concerns.
Tiger said on Thursday its Australian operations posted a hefty first quarter loss due to higher fuel costs, lower revenue and flight disruptions as a result of the Chilean volcano ash cloud.
And Tiger Airways newly-installed group chief executive Chin Yau Seng reaffirmed that the grounding was still costing the company about $S2 million ($A1.56 million) a week.
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The company said Tiger Australia posted an operating loss of $S23.2 million ($A18.05 million) in the three months to June 30, 2011, more than twice as large as the $S10.6 million ($A8.24 million) loss in the prior corresponding period.
"With the loss incurred in the first quarter, and the suspension of all domestic services in Australia for more than a month, we expect Tiger Airways Australia to report a net loss for this financial year," Tiger's first quarter accounts said.
Tiger has not made a profit in Australia since starting operations in this country in November 2007.
Mr Chin said the result was very disappointing.
"It goes without saying that the operating environment was very challenging during the quarter as a result of the weather events," Mr Chin said from Singapore during a conference call on the company's first quarter results on Thursday.
The Civil Aviation and Safety Authority (CASA) grounded Tiger's 10 Australian-based Airbus A320s on July 2.
CASA said it took action because it believed permitting the airline to continue flying posed a serious and imminent risk to air safety.
Tiger said in its first quarter accounts the suspension has resulted in the company refunding $S19.4 million ($A15.09 million) to customers from ticket sales and ancillary fees.
Mr Chin said when Tiger returned to Australian skies the focus would be on route profitability and operational excellence.
But he was unable to give an indication on when he would receive clearance from CASA to return flying, or resume ticket sales.
"We are committed to our business in Australia," Mr Chin said.
"It is a setback and a major setback this suspension, but I think we will get over it.
"We believe that there's money to be made in this segment and we remain committed to trying to make it work."
The poor performance of Tiger's Australian business overshadowed a profit in its Singapore operations and pushed the airline group to a loss of $S20.6 million ($A16.02 million) in the three months to June 30, 2011.
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