An­a­lysts see solid Q1 re­sults from AirAsia Group

New Straits Times - - Business -

KUALA LUMPUR: An­a­lysts ex­pect AirAsia Bhd and AirAsia X Bhd to per­form well fi­nan­cially in the first quar­ter fol­low­ing pas­sen­ger growth that ex­ceeded ad­di­tional ca­pac­ity.

Sta­tis­tics sug­gested that the group will de­liver a pos­i­tive fi­nan­cial per­for­mance in the first quar­ter of this year, May­bank In­vest­ment Bank Bhd avi­a­tion an­a­lyst Mohshin Aziz told NST Busi­ness yes­ter­day.

While jet fuel price is higher on a year-on-year ba­sis, it is still at a level that is not bur­den­some to the in­dus­try, he said.

In the first quar­ter of this year, AirAsia Group recorded a load fac­tor of 89 per cent, up three per cent from the same pe­riod last year.

The num­ber of pas­sen­gers car­ried in­creased 13 per cent yearon-year to 15.23 mil­lion, well ahead of the nine per cent in­crease in seat ca­pac­ity.

AirAsia Bhd achieved a load fac­tor of 90 per cent dur­ing the quar­ter, up five per cent while Thai AirAsia was up one per cent to 90 per cent, In­done­sia AirAsia was up three per cent to 82 per cent, Philip­pines AirAsia was up five per cent to 92 per cent and AirAsia In­dia was up three per cent to 89 per cent.

Hong Leong In­vest­ment Bank an­a­lyst Daniel Wong said the strong growth may in­di­cate a turn­around for the group’s loss­mak­ing Philip­pine arm, which in the third quar­ter last year cut its net loss.

He said the turn­around will be fu­elled by the strong growth recorded in its load fac­tor.

In a fil­ing in Novem­ber, AirAsia said its Philip­pine unit trimmed its net loss by 12 per cent to 1.2 bil­lion pe­sos (RM275 mil­lion) in the third quar­ter from 1.36 bil­lion pe­sos in the same pe­riod last year.

In the first quar­ter of last year, AirAsia Bhd’s net profit surged to RM877.79 mil­lion from RM149.33 mil­lion due to im­proved rev­enue and re­duc­tion in the av­er­age fuel price.

Its rev­enue in the same quar­ter in­creased 31 per cent to RM1.69 bil­lion from RM1.29 bil­lion sup­ported by a 17 per cent growth in pas­sen­ger vol­ume.

In the same quar­ter, AirAsia X recorded a net profit of RM179.49 mil­lion from a net loss of RM125.92 mil­lion.

Its rev­enue in­creased 25.2 per cent to RM970.67 mil­lion from RM775.37 mil­lion. Farah Adilla

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