Depreciation costs drag AirAsia Q2 profit down 53%
Sharply higher depreciation resulting from its recent sale-and-leaseback activity saw AirAsia Group report a 53% slide in operating profit to MYR207 million ($49 million) for the second quarter.
Revenue for the April-June period was up 20% to MYR3.14 billion, aided by higher passenger numbers and unit passenger revenue. RPKs across the group grew 16%, slightly lower than its 17% increase in ASKs, leading to a one-point decline in load factor to 85%.
The airline noted that it was impacted by a MYR160 million charge for higher maintenance provisions on its leased aircraft, stemming from recent sale-and-leasebacks of its fleet to BBAM and Castlelake, and changes in accounting standards.
Net profit fell 85% to MYR46.8 million as the company reported a MYR19.9 million loss on foreign exchange. It also recognised MYR147 million in previously incurred losses from AirAsia India, resulting from a change in its investment in the company.
Across its airline operations, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 14% to MYR436 million, as weaker results from its Thai unit offset stronger performances in Indonesia, the Philippines and India.