The carrier said yesterday that earnings from its Singapore operations reversed a loss of $A11.3 million in the previous fiscal year and had met a pledge to be profitable by its third year of operation.

Tiger, 49 per cent owned by Singapore Airlines, said revenues had risen 56 per cent to $A215 million. It posted a cash balance of $A15.6 million. It said operations from Singapore contributed to profits as its new Australian domestic service was still expanding.

Tiger chief executive Tony Davis said, ''Even with the challenging market conditions and current oil prices we remain confident about the long-term success of both our Asian- and Australian-based airlines.

''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.''

Tiger Airways did not give net profit figures for the June quarter, but said there had been a 57.8 per cent rise in revenue and a 64.9 per cent rise in seat capacity. Passenger numbers rose by 73.7 per cent.

Mr Davis said the airline coped with higher fuel costs by hedging against price rises and maintaining disciplined cost control. ''Clearly oil has been a challenge for all airlines. But ... we're not seeing the impact that some other airlines are seeing in Europe and North America of reducing demand.''

He said Tiger, while ensuring it could cope with higher oil prices, stood ready to take advantage of falling fuel prices. Crude oil traded below $US120 a barrel yesterday after topping $US147 last month. AFP