AirAsia's Q2 profits plunged 95pc to RM18m, after factoring in Indian associate's losses

Publish date: Wed, 28 Aug 2019, 09:46 PM
KUALA LUMPUR: AirAsia Group Bhd’s net profit for the second quarter ended (Q2) June 30, 2019, plunged 95 per cent to RM17.94 million from RM361.81 million, a year ago.
 
Its second quarter revenue, however, grew 20 per cent to RM3.14 billion from RM2.62 billion previously, the airline group said in its filing with Bursa Malaysia today.
 
In a separate statement, AirAsia said the strong growth in revenue was driven by an 18 per cent year-on-year (y-o-y) increase in passengers carried to 12.8 million.
 
“Revenue per available seat kilometre (RASK) grew by four per cent to 15.40 sen in Q2, driven by firm demand, with load factor remaining strong at 85 per cent despite a substantial 17 per cent increase in available seat kilometres (ASK).
 
“Ancillary revenue also grew by 39 per cent y-o-y, recorded at RM687 million for the consolidated group, driven by both traditional airline ancillary and non-airline ancillary streams,” the airline said.
 
AirAsia said its earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased nine per cent y-o-y to RM473 million in the quarter under review, primarily due to share of prior years’ losses at AirAsia India that was previously not recognised amounting to RM147 million.
 
It was also due to the additional cost related to building up RedBeat Ventures entities, 105 per cent higher maintenance and overhaul expenses on the back of higher maintenance provisions of approximately RM160 million following a higher number of leased aircraft due to the recent aircraft monetisation exercise, and RM10 million fine from the competition watchdog.
 
On the outlook, AirAsia planned to continue its growth strategy and strengthen its position, particularly within the ASEAN region.
 
“We have planned for a net fleet growth of 20 aircraft across six air operator’s certificate (AOCs) this year, with nine aircraft expected to be delivered to AirAsia India.
 
“We also expect to receive in November our first A321neo, which is more fuel-efficient, has a longer flight range and holds an additional 50 seat worth of capacity,” it said.
 
AirAsia continues to expect all ASEAN AOCs to be profitable for 2019, with a target group load factor of 85 per cent.
 
Meanwhile, sister company, AirAsia X’s net loss expanded to RM207.11 million, against RM57.46 million posted a year ago, while revenue slipped to RM1.01 billion from RM1.06 billion previously.
 
 
 - Bernama

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bahai4453

Invest in India always a big gamble. You seldom or I say have a very slim chance of making maoney, For example is Sembawang corp industries, Axiata and now Air asia.

2019-08-29 23:10

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