Highlight AirAsia’s 3Q13 profit falls 77.5% yoy

by **Cals** Wed 20 Nov 2013, 22:35

Highlight AirAsia’s 3Q13 profit falls 77.5% yoy

Business & Markets 2013

Written by Zatil Husna of theedgemalaysia.com

Wednesday, 20 November 2013 20:04

KUALA LUMPUR (Nov 20): AirAsia Bhd’s net profit plunged 77.5% year-on-year for the third quarter ended Sept 30 (3Q13).

The profit slumped to RM35.48 million for 3Q13, from RM157.81 million in the same corresponding period last year.

But revenue increased slightly to RM1.28 billion, up from RM1.24 billion a year ago.

In its notes on results to the stock exchange today, the budget airline said revenue growth was supported by a 11% growth in passenger volume but the average fare was down 12% at RM169 as compared to RM191 achieved in the third quarter of last year (3Q12).

Furthermore, ancillary income per passenger increased from RM40 to RM41 y-o-y only. The seat load factor was at 77% in the same period last year.

But in a separate press statement, the company said: “Profit after tax was down 78% y-o-y mainly due to the effects of changes of closing foreign exchange rates at 30 September 2013 of RM:USD3.26, as compared to 30 September 2012 of RM:USD3.16, which led to the devaluation of all total foreign currency denominated borrowings.

“This does not represent the financial performance of the business but merely an accounting entry.”

For the nine months period (9M13), the airline recorded net profit of RM198.62 million, down sharply from RM486.20 million in Jan-Sept 2012. Revenue rose to RM3.84 billion from RM3.59 billion.

Looking forward, AirAsia expects passenger growth to be strong in Malaysia, Thailand and Indonesia for the fourth quarter, but it is “cautiously optimistic” of the Philippines market.

“The outlook for the fourth quarter of the year should be seen in the context of the current prices of oil and aviation fuel. However… the directors remain positive for the prospects of the group for the fourth quarter, the remainder of 2013.”