KUALA LUMPUR: AirAsia Bhd’s net profit fell 53% to RM152.3 million, or 5.5 sen a share, for 3QFY11 ended Sept 30 compared with RM327.29 million a year earlier. The steep decline was mainly due to lower finance income than in the same period last year.
Operationally, performance has improved slightly with operating profit rising 1.9% to RM251.4 million from RM246.7 million a year earlier. On the top line, revenue grew 9.8% to RM1.076 billion from RM979.7 million a year earlier.
In its notes to Bursa Malaysia, AirAsia said the higher 3Q revenue was supported by an 8% growth in passenger volume while the average fare was 4% higher at RM180, compared with RM173 a year earlier. Its ancillary income per passenger, however, fell 14% to RM39 from RM45 a year earlier, while seat load per passenger was 1% lower at 77%.
For the nine-month period, net profit fell 43% to RM428.49 million, due to lower finance income, while revenue gained 15% to RM3.2 billion.
CEO Tan Sri Tony Fernandes said the operating environment has been challenging due to weak macroeconomic indicators and high jet fuel prices.
“Although the third quarter is traditionally one of our weaker quarters, we have managed to grow revenues across all three operations. In relation to costs, we have taken evident measures to drive down costs,” he said in a statement.
AirAsia reported an earnings before interest, tax, depreciation, amortisation and restructuring or rent costs (Ebitdar) margin of 39% and earnings before interest and tax (Ebit) margin of 23% for 3Q. Its cost per available seat kilometre (Cask) rose 5% year-on-year (y-o-y) to 12.71 sen despite a 41% increase in fuel prices. Cask, excluding fuel, was 15% y-o-y lower at 6.22 sen.
On the associate level, AirAsia Thailand’s 3Q revenue grew 33% to 3.72 billion baht (RM378 million) from 2.8 billion baht a year earlier due to higher passenger volume, higher ancillary income and improving yields.
“AirAsia Thailand has achieved passenger growth of 18% compared with 3QFY10 while the seat load factor was higher by 4% at 80%,” the company said.
However, the Thai unit’s operating profit fell 48% to 195 million baht from 378 million baht due to higher fuel expenses. Its net profit of 193.6 million baht was also much lower than 485 million baht a year earlier.
AirAsia Indonesia’s revenue rose 37% to 1.07 billion rupiah (RM376,235) from 781.66 million rupiah, supported by a 30% increase in number of passengers.
However, its seat load factor fell to 78% from 81% a year earlier as passenger growth was slightly behind capacity growth. The unit’s ancillary income increased 9%, while base fares rose by 5%.
AirAsia Indonesia posted a loss after tax of 25.7 billion rupiah compared with a profit of 158 billion rupiah a year earlier, due to a 52.9 billion rupiah provision “for the cost of early return of the remaining B737 aircraft in the fleet”.
On the group’s outlook, Fernandes said its forward booking in the final quarter remains strong for Malaysia, Thailand and Indonesia.
He said the floods in Thailand will have minimal impact on 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 we are still performing well in terms of yields and loads,” he said. He added that tourist arrivals in December are expected to be strong.
“For AirAsia Indonesia, we have just moved the international operations from Terminal 2 to Terminal 3, where our current domestic operations are located,” he said.
The group will also take delivery of six A320 aircraft in 4Q11.
“The outlook for the final quarter of the year should be seen in the context of the current high price of oil and aviation fuel. Fuel surcharges, introduced during the third quarter of the year have mitigated, but not fully offset, the effect of higher fuel prices,” said AirAsia in its filing with Bursa.
AirAsia gained one sen to close at RM3.67 yesterday with four million shares done.
This article appeared in The Edge Financial Daily, November 23, 2011.
Operationally, performance has improved slightly with operating profit rising 1.9% to RM251.4 million from RM246.7 million a year earlier. On the top line, revenue grew 9.8% to RM1.076 billion from RM979.7 million a year earlier.
In its notes to Bursa Malaysia, AirAsia said the higher 3Q revenue was supported by an 8% growth in passenger volume while the average fare was 4% higher at RM180, compared with RM173 a year earlier. Its ancillary income per passenger, however, fell 14% to RM39 from RM45 a year earlier, while seat load per passenger was 1% lower at 77%.
For the nine-month period, net profit fell 43% to RM428.49 million, due to lower finance income, while revenue gained 15% to RM3.2 billion.
CEO Tan Sri Tony Fernandes said the operating environment has been challenging due to weak macroeconomic indicators and high jet fuel prices.
“Although the third quarter is traditionally one of our weaker quarters, we have managed to grow revenues across all three operations. In relation to costs, we have taken evident measures to drive down costs,” he said in a statement.
AirAsia reported an earnings before interest, tax, depreciation, amortisation and restructuring or rent costs (Ebitdar) margin of 39% and earnings before interest and tax (Ebit) margin of 23% for 3Q. Its cost per available seat kilometre (Cask) rose 5% year-on-year (y-o-y) to 12.71 sen despite a 41% increase in fuel prices. Cask, excluding fuel, was 15% y-o-y lower at 6.22 sen.
On the associate level, AirAsia Thailand’s 3Q revenue grew 33% to 3.72 billion baht (RM378 million) from 2.8 billion baht a year earlier due to higher passenger volume, higher ancillary income and improving yields.
“AirAsia Thailand has achieved passenger growth of 18% compared with 3QFY10 while the seat load factor was higher by 4% at 80%,” the company said.
However, the Thai unit’s operating profit fell 48% to 195 million baht from 378 million baht due to higher fuel expenses. Its net profit of 193.6 million baht was also much lower than 485 million baht a year earlier.
AirAsia Indonesia’s revenue rose 37% to 1.07 billion rupiah (RM376,235) from 781.66 million rupiah, supported by a 30% increase in number of passengers.
However, its seat load factor fell to 78% from 81% a year earlier as passenger growth was slightly behind capacity growth. The unit’s ancillary income increased 9%, while base fares rose by 5%.
AirAsia Indonesia posted a loss after tax of 25.7 billion rupiah compared with a profit of 158 billion rupiah a year earlier, due to a 52.9 billion rupiah provision “for the cost of early return of the remaining B737 aircraft in the fleet”.
On the group’s outlook, Fernandes said its forward booking in the final quarter remains strong for Malaysia, Thailand and Indonesia.
He said the floods in Thailand will have minimal impact on 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 we are still performing well in terms of yields and loads,” he said. He added that tourist arrivals in December are expected to be strong.
“For AirAsia Indonesia, we have just moved the international operations from Terminal 2 to Terminal 3, where our current domestic operations are located,” he said.
The group will also take delivery of six A320 aircraft in 4Q11.
“The outlook for the final quarter of the year should be seen in the context of the current high price of oil and aviation fuel. Fuel surcharges, introduced during the third quarter of the year have mitigated, but not fully offset, the effect of higher fuel prices,” said AirAsia in its filing with Bursa.
AirAsia gained one sen to close at RM3.67 yesterday with four million shares done.
This article appeared in The Edge Financial Daily, November 23, 2011.
