AirAsia Q3 profit down 53pc year-on-year

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(Reuters) KUALA LUMPUR, Nov 22 — Budget carrier AirAsia Bhd’s third-quarter profit fell 53 per cent to RM152.3 million from RM327.3 million a year ago.

 

Despite the year-on-year fall, the low-cost carrier’s performance exceeded a profit estimate of RM144.8 million provided by an analyst tracked by Thomson Reuters I/B/E/S.

 

AirAsia shares rose 0.3 per cent to RM3.67 today ahead of the earnings announcement, in line with the broader market ‘s gain.

 

Bursa Malaysia Announcement

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Airasia Reports Lower Profit, Higher Revenue

 

KUALA LUMPUR, Nov 22 (Bernama) -- AirAsia Bhd has registered a lower pre-tax profit of RM456.407 million for the first nine months of 2011 compared to RM710.735 million during the same period last year.

 

Revenue for the three quarters, however, rose to RM3.201 billion from RM2.783 billion previously.

 

In a statement Tuesday, the airline said its pre-tax profit for the third quarter ended Sept 30, 2011, dwindled to RM108.496 million compared to RM310.342 million in the corresponding quarter last year.

 

Revenue for the three-month period grew to RM1.076 billion from RM979.710 million.

 

Commenting on the results, AirAsia Chief Executive Officer Tan Sri Tony Fernandes said monetising its ancillary investment, which has always been one of AirAsia's key strategies to allow the company to focus on its core competencies, had been fruitful.

 

"The Asian Aviation Centre of Excellence (our JV with CAE) recorded a net profit of RM6.2 million and AAE Travel (our JV with Expedia) recorded a net profit of RM14 million in their first quarter," he said, adding that both the joint-ventures were launched in July 2011.

 

On the associates, AirAsia Thailand posted a revenue of THB3.719 billion, a growth of 33 per cent year-on-year.

 

The operating profit was reported at THB195 million, down 48 per cent caused by a 70 per cent year-on-year increase in fuel expenses.

 

As for AirAsia Indonesia, it posted a 37 per cent rise in revenue of IDR1.07 billion, supported by a 30 per cent increase in number of passengers carried, reflecting a strong demand environment.

 

Operating expense increased by 73 per cent mostly due to increase in fuel expense which approximately doubled due to 41 per cent increase in average fuel prices and 42 per cent increase in fuel consumed.

 

"AirAsia Indonesia also booked a provision for early return of the remaining three B737s amounting to IDR53 billion," Fernandes said.

 

On the outlook for the rest of 2011, he said AirAsia would have a good fourth quarter.

 

"Our forward booking in the final quarter remains very strong for Malaysia, Thailand and Indonesia.

 

"The floods in Thailand are expected to have a minimal impact to the group's financials and operations. Although the Bangkok area was severely affected, we have seen that the domestic sector's performance has been resilient and are still performing well, in terms of yields and loads," he said.

 

Fernandes added there was expected to be a short term impact on international sectors to/from Thailand in the fourth quarter of 2011, though December performance, the peak month for tourist arrivals, was still expected to be strong.

 

Moving ahead beyond 2011, Fernandes said that AirAsia would remain focused in its strategy.

 

"Come Dec 8, we will be celebrating the first decade of AirAsia as a low-cost carrier. Our next decade will be aimed at sustaining our momentum, at further strengthening connectivity within Asean and beyond, and at delivering our brand promise of low fares and high-quality service.

 

"It will also be a decade when we will reap the full benefits from all of our joint-ventures," he said.

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AirAsia Q3 net profit down on fuel

 

PETALING JAYA: AirAsia Bhd posted a 53.5% year-on-year drop in net profit to RM152.3mil for its third quarter mainly due to higher fuel expenses and foreign exchange (forex) losses.

 

The budget carrier spent 45% more on fuel, at RM421.2mil, for the three months ended Sept 30, compared with a year earlier. It also incurred forex losses of RM169.4mil against forex gains of RM270.8mil in the corresponding period last year.

 

Meanwhile, the group's revenue jumped 9.9% to RM1.08bil for the quarter, it said in a filing with Bursa Malaysia.

 

The higher revenue was supported by an 8% growth in passenger volume while the average fare was 4% higher at RM180 compared with RM173 in the same period last year, AirAsia said.

 

However, ancillary income per passenger year-on-year fell by 14% to RM39 from RM45 as ancillary income from AirAsia Go was no longer included. The seat load factor was also one percentage point lower at 77% compared with 78% in the same period last year.

 

For the nine months ended Sept 30, AirAsia's net profit fell 42.9% year-on-year to RM428.49mil, despite an increase in revenue to RM3.2bil from RM2.78bil a year earlier.

 

AirAsia said it was optimistic about the fourth quarter. “Based on the current forward-booking trend, underlying passenger demand in the final quarter for the Malaysian, Thailand and Indonesian operations remains positive,” it said.

 

The group pointed out that load factors achieved in October were in line with the prior year in Thailand and slightly below in Malaysia and Indonesia, with higher average fares in all three countries.

 

Passenger numbers are expected to remain strong for the rest of the year as the fourth quarter was the strongest for the Malaysian operations, said AirAsia.

 

The floods in Thailand are expected to have minimal impact, affecting only the Kuala Lumpur to Bangkok sector.

 

Also, the group will take delivery of six A320 aircraft in the fourth quarter.

 

Four aircraft will be deployed in Malaysia, one in Thailand and one in the Philippines.

 

One new route will be operated from Malaysia, to Da Nang in Vietnam.

 

Scheduled services in the Philippines are expected to commence in January.

 

Source

[Izanee 0]

Hmmm... dont worry uncle tony, MAS has cash reserves of RM 1 billion. can fund some gleaming new A320 neos