Financial Round Up
AirAsia 1Q profit drops
June 10th 2014
Kuala Lumpur-based LCC group AirAsia has experienced a sharp drop in profits during the first quarter of 2014. Particularly affected was the corporation’s long-haul arm AirAsiaX despite an upward trend in load factor and strong traffic growth. Read More » Depressed yields in the Malaysian market are the main factor for the drop.
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To counter the less than ideal situation AirAsia has deferred the delivery of 19 aircraft in 2014 and another seven aircraft in 2015. It is also in the process of selling six A320 aircraft at the moment.
However, it is not all bad news for AirAsia given the pending restructuring at Malaysia Airlines that could provide AirAsia with an opportunity to accelerate growth once again and improve yields.
