AirAsia posts Q3 net profit of RM353.9m

> Flies back into the black on higher air­craft op­er­at­ing lease in­come, cheaper fuel

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: AirAsia Bhd posted a net profit of RM353.89 mil­lion in the third quar­ter ended Sept 30, 2016 (Q3FY16), from a net loss of RM405.73 mil­lion in the same pe­riod last year, at­trib­uted mainly to higher air­craft op­er­at­ing lease in­come and a 22% re­duc­tion in the av­er­age fuel price.

Rev­enue was up 11.3% to RM1.69 bil­lion from RM1.5 bil­lion in the pre­vi­ous cor­re­spond­ing quar­ter due to higher growth in pas­sen­ger vol­ume and av­er­age fare.

For the nine months pe­riod, the low­cost car­rier reg­is­tered a net profit of RM1.57 bil­lion against a net loss of RM13.37 mil­lion a year ago while rev­enue grew 20.9% to RM5 bil­lion, from RM4.14 bil­lion pre­vi­ously.

In a fil­ing with Bursa Malaysia yes­ter­day, AirAsia said its rev­enue dur­ing the quar­ter was sup­ported by a 5% growth in pas­sen­ger vol­ume while the av­er­age fare was up 4% at RM164 com­pared with RM157 in Q3FY15.

On the cash flow po­si­tion, AirAsia saw a net out­flow of RM88.8 mil­lion as cash in­flows from op­er­at­ing and in­vest­ing ac­tiv­i­ties were ex­ceeded by cash out­flows from fi­nanc­ing ac­tiv­i­ties.

As at end-Septem­ber 2016, the group said, its to­tal debt stood at RM10.3 bil­lion, while its net debt af­ter off­set­ting the cash bal­ances amounted to RM8.8 bil­lion. Com­ment­ing on its prospects, Air Asia said it re­mains con­fi­dent for the re­main­ing quar­ter of 2016 as it con­tin­ues to ob­serve strong de­mand across most sec­tors due to the year-end hol­i­days and fes­tiv­i­ties. “In Malaysia, the fourth quar­ter of 2016 is show­ing an av­er­age fore­cast load fac­tor of 89% as we con­tinue to see strong de­mand and a bet­ter fare en­vi­ron­ment.” “This is cou­pled with a favourable fuel price en­vi­ron­ment. In Thai­land, load fac­tor in the fourth quar­ter of 2016 is fore­cast to be 80%. As with Malaysia, we see en­cour­ag­ing for­ward book­ings in the re­main­ing quar­ter of 2016 stem­ming from the de­mand from win­ter hol­i­day mak­ers,” it added.

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