Highlight AirAsia 1Q profit jumps 33.3% yoy to RM139.7m

by **Cals** Wed 21 May 2014, 01:55

Highlight AirAsia 1Q profit jumps 33.3% yoy to RM139.7m

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Tuesday, 20 May 2014 19:37

KUALA LUMPUR (May 20): Budget carrier AirAsia Bhd’s net profit jumped 33.3% year-on-year (y-o-y) to RM139.7 million in the first quarter ended Mar 31, 2014, from RM104.8 million in similar quarter last year.

But revenue was flat at RM1.302 billion from RM1.300 billion a year earlier.

In a statement to Bursa Malaysia, AirAsia said its revenue growth was supported by a 4% growth in passenger volume but the average fare was down 9% at RM164 as compared to RM180 achieved in the previous corresponding quarter.

The airline said ancillary income per passenger rose 7% y-o-y to RM46. Seat load factor rose to 81% from 79% in the same quarter last year.

Touching on its associate company, Thai AirAsia, the airline said net profit plunged to THB244.7 million versus THB739.0 million in the previous corresponding quarter. However, revenue rose 7% y-o-y to THB6.46 billion from THB6.03 billion.

AirAsia said its associate’s positive growth in revenue is attributed to higher passenger volumes which increased by 22% y-o-y, despite a 11% decrease in the y-o-y unit passenger revenue.

It added anciliary income per passenger increased by 11% y-o-y and passengers carried by Thai AirAsia also increased as capacity rose 31% y-o-y. Nevertheless, the seat load factor decreased 7 percentage points to 80%.

As for AirAsia India, which recently obtained the air operating permit from the Indian Directorate General of Civil Aviation, the airline said it recorded a net loss of RM12.4 million in the reviewed quarter.

“The outlook for the second quarter this year should be seen in the context of the current prices of oil and aviation fuel while the operating environment in both Indonesia and the Philippines remains challenging,” said AirAsia on prospects ahead.

“In Thailand, forward loads for the remaining months of the second quarter this year are lower than the prior year with average fares also lower than the prior year – a reflection of the current political unrest in the country.”

AirAsia said the group will take delivery of nine A320 aircraft in the second quarter this year, all of which will be deployed in Malaysia.