AirAsia remains profitable, sees 'vast opportunities to grow'
AirAsia remains profitable, sees 'vast opportunities to grow'
Wednesday November 25, 2009
AirAsia's growth continued unabated in the third quarter despite the recession, as the LCC posted a MYR130.1 million ($38.4 million) profit that represented a reversal from the MYR465.5 million loss suffered in the year-ago period.
A 19% year-over-year increase in passenger numbers to 3.8 million, rising ancillary income and a "relentless focus on costs" were key drivers of the result, CEO Tony Fernandes said. "While the airline industry is facing arguably the most difficult environment in recent memory, AirAsia is determined to grow traffic, market share and profits. We see vast opportunities to grow our business." He said India is a particularly attractive growth market and that airports around the region "now look at us as their engine of growth and offer us attractive deals."
He said fourth-quarter demand is "positive" and that the group intends to transport 25 million passengers in 2009, although fares continue to fall.
Third-quarter revenue rose 4.5% to MYR739.7 million and operating profit more than doubled to MYR230.3 million from the MYR91.6 million earned in the 2008 third quarter. AirAsia's loss last year was the result of one-time charges relating to fuel hedges and currency exchange rate fluctuations.
Traffic at the Malaysia-based mainline rose 10% to 3.77 billion RPKs against a 13% lift in capacity to 5.45 billion ASKs. Seat capacity climbed 19% along with passenger traffic. Average fare fell 27% to MYR141.6 but ancillary revenue per passenger soared 57% to MYR36.2. Unit revenue dropped 11% to 12.6 sen and unit cost plunged 22% to 11.3 sen. The airline operated 48 aircraft as of Sept. 30, two more than a year earlier.
Thai AirAsia swung to profit as well, posting earnings of MYR130.1 million compared to a MYR470.6 million deficit in the year-ago period, while AirAsia Indonesia reported a MYR21.2 million profit compared to a MYR4.3 million loss last year.
Through the first nine months of 2009, the company was MYR398.5 million in the black, reversed from a MYR441.1 million deficit in the year-ago period. Operating profit rose nearly threefold to MYR963.8 million from MYR375.3 million and revenue climbed 18.1% to MYR2.28 billion.
"Barring any unforeseen circumstances, the directors remain positive with the prospects of the group in the fourth quarter 2009," it said.
by Brian Straus
atwonline
