AirAsia Q2 profit soars

Low cost car­rier ben­e­fits from re­ver­sal of de­ferred tax

The Star Malaysia - StarBiz - - News -

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

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