Airasia Q2 Revenue Rises To RM1.18 Billion

[flee 5]

KUALA LUMPUR, Aug 28 (Bernama) -- AirAsia Bhd's revenue for the second quarter ended June 30, 2012 rose to RM1.18 billion from RM1.08 billion in the same quarter of 2011.

 

Its net operating profit, however, fell to RM130.94 million from RM135.17 million previously.

 

In a statement Tuesday, chief executive officer, Aireen Omar, said despite the majority of airlines losing money or severely behind in their earnings, AirAsia has continued to outperform each quarter by posting healthy profits.

 

"Our cash position also remains strong with RM2.16 billion in cash and bank balances and net gearing remained low at 1.10 times," she said.

 

Aireen said the company now recognised profit from Thai AirAsia of RM11.9 million and Asian Aviation Centre of Excellence of RM2.2 million.

 

Moving forward, Aireen said, AirAsia was on course for another good year in terms of performance.

 

"Based on forward bookings, demand remains positive as the Hari Raya Aidilfitri period will push for strong load factors in the third quarter 2012, and positioning itself for a seasonally-strong quarter," she said.

 

She said AirAsia was expected to launch more new routes and increase frequencies on few routes within Asean in the second half of the year.

 

"This will be supported by the deliveries of 13 (as of date) new A320s," she said.

 

On fuel prices, Aireen said, the airline was constantly monitoring the situation and aimed to match its hedges against forward bookings.

 

"We will not hesitate to add to its hedges if we perceive an opportunity," she said.

 

Bursa Malaysia Filing: http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/0862E5D019852B1F48257A68003B0CE3/$File/AirAsia%20Bursa%20Announcement%20-%20Q2%202012%20-%20Final%20-%2028%20%20August.pdf

[flee 5]

AirAsia May Sign 100-Jet Airbus Order After Profit Surge

 

 

AirAsia Bhd. (AIRA), the region’s biggest discount carrier, may sign an order for as many as 100 Airbus SAS aircraft at next month’s Berlin airshow after reporting an 11-fold jump in quarterly profit.

 

Negotiations with Airbus are going “quite well,” Chief Executive Officer Aireen Omar said in a Bloomberg TV interview today. The carrier would like to sign the deal in Berlin, she said. The show starts Sept. 11.

 

AirAsia already has outstanding orders for 272 single-aisle A320s as it adds new ventures across the region and wins travelers with low-cost fares. The carrier’s passenger numbers jumped 10 percent in the quarter through June and forward bookings remain “strong,” Aireen said.

 

“The outlook for AirAsia remains positive,” Annuar Aziz and Timothy Ross, analysts at Credit Suisse Group AG, wrote in a report today. They reiterated an overweight rating on the airline’s stock and more than doubled their full-year earnings per share forecast.

 

The carrier’s second-quarter profit jumped to 1.19 billion ringgit ($381 million) from 104.3 million ringgit helped by a 1.04 billion ringgit one-time gain related to its stake in a Thai affiliate. Net operating profit fell 3 percent to 130.9 million ringgit. The carrier lowered fees for check-in baggage during the quarter, a move it has now reversed, Credit Suisse said.

 

The company rose 0.6 percent to 3.57 ringgit as of 12:05 a.m. in Kuala Lumpur trading after earlier advancing as much as 2.5 percent. The benchmark FTSE Bursa Malaysia KLCI Index advanced 0.1 percent.

 

‘Good Demand’

The airline is in talks on an order for 50 A320s with 50 options, now-Group Chief Executive Officer Tony Fernandes said in May. It plans to start new destinations while boosting frequencies on several routes within Southeast Asia in the second half, according to a statement yesterday.

 

“We’ve seen really strong, good demand,” Aireen said. “We definitely need more new aircraft.”

 

The carrier has grown from its Malaysian roots to establish budget spin-offs in countries including Indonesia, Thailand and most recently the Philippines and Japan. It is also looking at getting an operator’s license in Singapore, Aireen said.

 

Malaysian Airline System Bhd. (MAS), the country’s largest long- haul carrier, this month reported net loss that narrowed to 349.2 million ringgit in the quarter, from 526.7 million ringgit a year earlier.

 

Source: http://www.bloomberg...ofit-surge.html