News
AirAsia Group posts US$76 million second quarter net profit
September 7th 2018
AirAsia Group, which for accounting purposes includes AirAsia Berhad in Malaysia, Thai AirAsia, Indonesia AirAsia and Philippines AirAsia, has posted a second quarter net profit of MYR315 million (US$76 million), up 125% year-on-year. Read More »
Malaysia-based AirAsia and Manila-headquartered Philippines AirAsia recorded quarterly profit gains, but the group subsidiaries in Indonesia and Thailand lost money.
Indonesia AirAsia posted an operating loss of IDR514 billion (US$35 million) for the second quarter to June 30, a reversal of a IDR212 billion operating profit in the same period last year. The Indonesian unit’s revenues decreased 4.4% during the quarter while expenses rose 38%. AirAsia said this was due to high fuel costs, other increased operating costs and enhanced sales and marketing activities. Nevertheless, Indonesia AirAsia’s attributable net loss decreased 24%, to IDR426 billion, as the LCC benefited from a IDR130 billion tax gain.
Thai AirAsia posted second quarter revenues of THB9.06 billion, up 9% year-on-year, on the back of a 14% rise in ASKs and a 13% increase in passengers carried. Nonetheless, the Don Mueang-based airline recorded a net operating loss of THB653.9 million to June 30, which resulted in an after-tax loss of THB567.5 million. AirAsia said the slump in performance was largely due to high fuel costs and 5% lower average fares amid strong competition.
“In general, the second quarter is a less travelled period, hence a slower season for air travel. There was also pressure on fares leading up to the 14th General Elections in May 2018 [in Malaysia]. On top of that, our Indonesia operations have been affected by volcanic activities and the recent eruption of Mount Agung. As a whole, our operating profits were largely impacted by the rising global fuel prices and hence overall fuel related costs have gone up. Despite all adversities and circumstances, our financial performance was commendable, recording 125% up in net profits to RM315.3 million,” commented AirAsia Group CEO, Tony Fernandes.
“Malaysia and Philippines both recorded healthy net operating profits of RM205 million [US$49.5 million] and PHP51 million [US$950,000], respectively, despite higher fuel related costs. Indonesia and Thailand on the other hand, did not perform as well, recording net operating losses of IDR186million and THB654million as a result of fare pressure from competition in their respective markets,” Fernandes added.
