Singapore-based budget carrier Tiger Airways yesterday revealed it had made its first net profit ? S$37.8m (US$27m) in the year to end-March 2008. It is the first time the Singapore Airlines associate has published its

financial numbers in the three years since its creation.

Chief Executive Tony Davis said the airline has delivered on its promise to become profitable in three years, and has done so without making any additional cash call beyond the original S$24 million pumped in by its four shareholders, although it has put up a Request for Proposal for US$224 million to finance four aircraft.?Even with the challenging market conditions and current oil prices, we remain confident of the long-term success of both our Asian and Australian-based airlines,? he said. ?We continue to see strong demand for our low fares and we are committed to continued growth as we expand our operations in both Australia and Singapore.?

Local business media reports said the result came on the back of a 56% rise in top line revenues to S$271m ($193.6m). As of March 31, 2008, Tiger was sitting on a cash balance of S$19.6m ($14m), up five times from S$3.9m ($2.78m) in FY06/07. Its EBITDA margin was 26.1%, while its trading margin was 8.8%.

Tiger has grown rapidly over the past three years. Compound annual growth in revenue has averaged 90%, while passenger numbers have risen by an annual average of 48%.

The airline has 12 Airbus 320 aircraft and firm orders for 60 more. Eight of these aircraft are based in Singapore and four in Australia, where Tiger Australia has twin bases in Melbourne and Adelaide ? but it pulled out Darwin recently, citing high operating costs. By the middle of next year, it will also operate a Korean subsidiary out of Incheon airport.

SIA owns 49% of Tiger, while Temasek holds 11%. Its other two shareholders are US-based aviation investment fund Indigo Partners with 24%and Tony Ryan's family-controlled Irelandia with 16%.

Davis is confident that despite high fuel prices, Tiger ? which does its own fuel hedging ? will remain profitable this year. First-quarter numbers seem to support this optimism. In its April-June Q1, Tiger enjoyed a 73.7% year-on-year increase in passengers, a 64.9% increase in seat capacity, a 4.1% rise in load factor and a 57.8% increase in revenue.

The airline ? which flies to 26 destinations in 11 countries ? will take delivery of four aircraft this year. Three will be based in Singapore and one in Melbourne. Tiger is also boosting ancillary revenue by charging for services on an 'a la carte' basis ? for example, passengers pay for checked-in baggage depending on its weight and also for seat allocation.