AirAsia Q2 profit soars
Low cost carrier benefits from reversal of deferred tax
PETALING JAYA: AirAsia Group Bhd’s net profit for the second quarter ended June 30 soared 147% to RM361.81mil from RM146.52mil in the previous corresponding period due to the reversal of deferred tax on the sale of aircraft.
In a filing with Bursa Malaysia yesterday, the low-cost carrier said revenue in the second quarter increased to RM2.62bil from RM2.38bil a year earlier.
“The growth was attributed to a 13% increase in total passengers carried. Load factor was at 86% in the second quarter of 2018 compared with 89% in the second quarter of 2017 due to a 17% increase in capacity.
“Average fare has reduced 3% year-onyear (y-o-y), whilst the overall revenue per available seat kilometre of the group has decreased 3% to 14.83 sen in the second quarter of 2018 from 15.35 sen in the previous corresponding period.”
During the quarter, AirAsia said it had also delivered an additional 1,891,936 seats compared to the second quarter of 2017, which represented an additional 17% growth in capacity.
“The total net operating profits of the group has decreased 18% y-o-y to RM324.8mil from RM395.4mil in the second quarter of 2017 as a result of higher fuel prices and increase in maintenance and leasing costs on aircraft.”
AirAsia said its cash inflow from operations was RM1.18bil, compared to an inflow of RM371.4mil in the immediate preceding quarter ended March 31, 2018.
“Net cash inflow in the quarter amounted to RM58.4mil due to repayment of loans for aircraft of RM2.04bil.”
For the six-month period ended June 30, AirAsia’s net profit grew to RM1.5bil from RM762.40mil in the previous corresponding period, while revenue improved to RM5.18bil from RM4.6bil a year earlier.
Barring any unforeseen circumstances, AirAsia said it remains positive that the overall results of the group in 2018 would be favourable.
“Our Malaysian operations remain strong with Indonesian operations slowly recover- ing. We face challenges in Thailand following the ferry incident in Phuket, which has dampened demand from China.
“The third quarter is usually the peak quarter for travel to Boracay, but unfortunately, the Philippines government has restricted travel to the island.”
Meanwhile, AirAsia’s long-haul arm, AirAsia X Bhd (AAX), suffered a net loss of RM57.46mil in the second quarter of 2018 to end-June, compared with a net profit of RM47.44mil in the previous corresponding period.
The company said this was mainly contributed by an increase in the average fuel price from US$65 (RM267) per barrel in the second quarter of 2017 to US$89 (RM366) per barrel in the second quarter of 2018.
Revenue in the quarter stood at RM1.05bil compared with RM1.04bil a year earlier.
For the first half of 2018, AAX reported a net loss of RM15.96mil compared with a net profit of RM57.77mil in the previous corresponding period, while revenue grew to RM2.32bil from RM2.22bil a year earlier.
High flyer: For the six-month period ended June 30, AirAsia’s net profit grew to RM1.5bil from RM762.40mil in the previous corresponding period, while revenue improved to RM5.18bil from RM4.6bil a year earlier. — Reuters