AirAsia 2Q pre-tax profit soars 52.4 per cent to RM386.8 million
KUALA LUMPUR: Low-cost carrier AirAsia Bhd's pre-tax profit soared 52.4 per cent to RM386.8 million for the second quarter ended June 30, 2017 from RM253.81 million for the same quarter last year, it said in a filing to Bursa Malaysia yesterday.
Revenue grew 19 per cent to RM2.37 billion from RM1.99 billion previously, mainly due to a 10 per cent increase in total passengers carried and a strong seat load factor of 89 per cent compared with 87 per cent in the same quarter a year ago.
“Average fare increased 11 per cent to RM177 from RM160 in the second quarter last year while the overall revenue for available seat kilometer of the group improved 11 per cent to 15.35 sen in the second quarter of 2017 from 13.89 sen in the same quarter last year,” it said.
However, net profit for the current quarter was 53 per cent lower year-on-year at RM139.9 million.
The reduction was mainly attributable to a one off deferred tax charge of 647.2 billion rupiah (approximately RM212 million) offset by a IDR134.4 billion (approximately RM44 million) current tax credits in Indonesia AirAsia (IAA) during the current quarter, it said.
For the cumulative six months period, the airline's pre-tax profit edged down to RM1.02 billion from RM1.34 billion previously, while revenue stood at RM4.6 billion versus RM3.23 billion before.
The group's total debt as of end of June 2017 was RM9.8 billion, while net debt after offsetting the cash balances amounted to RM7.7 billion, said AirAsia.
On the outlook, the group is projected to achieve an average load factor of 88 per cent in the third quarter of 2017 based on the existing forward booking trend.
“In order to better serve the growing demand in the region, the group is also planning to increase an additional 22 planes through a combination of finance and operating leases in the second half of 2017,” it said.
This will be one of the fastest pace of expansion in the last few years, made possible due to the favourable competitive and operating environment of aviation in Asia.
“For the remaining quarters of 2017, we remain optimistic as we continue to observe strong demand across most sectors coupled with a stable fuel price and foreign exchange environment,” it said.
In Thailand, load factor in the third quarter of 2017 is forecast to be 85 per cent based on existing forward booking trend, it said, adding that Thailand AirAsia would focus on leveraging the existing strength of AirAsia network and strengthening its marketing activities on China and India routes in the remaining quarters of 2017.
In India, the forecast load factor for the third quarter of 2017 is at 86 per cent.
“For the remaining quarters of 2017, AirAsia India will remain focused on building a footprint in the Indian domestic market with the introduction of new routes and frequency increases.
“The board remains positive for the prospects of the group in 2017 and is optimistic that the 2017 results may be better than 2016, barring any unforeseen circumstances,” it said. —