Budget airline Tiger Airways will not resume flying until at least August 3, after a court hearing about its grounding was adjourned.

The Federal Court was due to hear an application by the Civil Aviation Safety Authority (CASA) to extend the Tiger grounding, but it and the airline have agreed to adjourn that hearing until August 3.

Both parties agreed to the adjournment to give them time to keep working through the safety issues raised by CASA that triggered the grounding at the start of last month.

Tiger Airways says neither it nor CASA see any point in holding the hearing while they are in ongoing discussions regarding the suspension.

The airline says the adjournment means it will be grounded until at least Wednesday.

Tiger says press reports that it will recommence flights on Friday August 5 are speculation.

The airline says it will make a formal announcement about the resumption of flights at the appropriate time.