AirAsia net operating profit up in 4th quarter

PETALING JAYA: AirAsia Bhd reported a 19.9% decline in net profit to RM372.65 million for the fourth quarter ended Dec 31, 2017 compared with RM465.32 million in the previous corresponding period, due to the absence of tax credit.

Net operating profit however was 13.6% higher at RM549,8 million, compared with RM484.0 million for the corresponding quarter in 2016, on a 200% jump in other income which came from gain sale of interest in joint venture and sale and leaseback of aircraft.

Its revenue however, soared 37.2% from RM1.94 billion to RM2.66 billion.

AirAsia’s full-year net profit rose slightly by 1.1% from RM1.62 billion to RM1.64 billion on the back of a 41.8% rise in revenue from RM6.85 billion to RM9.71 billion.

The growth was attributed to a 11% increase in the total passengers carried and a rise in load factor to 88% compared with 87% in 2016. Average fare remained consistent at RM176, whilst the overall revenue per available seat kilometre expanded 3% to 15.13 sen in 2017 against 14.69 sen in 2016.

During the year under review, the group also delivered an additional 3.93 million seats compared with 2016, representing an additional 10% growth in capacity as a result of a 17% increase in total fleet size from 105 aircraft in 2016 to 123 aircraft in 2017.

Looking ahead, the low-cost carrier expects to achieve an average load factor of 87% in the first quarter of 2018 based on the existing forward booking trend.

“Barring any unforeseen circumstances, the board remains positive that the overall results of the group in 2018 may be better than 2017,” it added.

On Bursa Malaysia yesterday, AirAsia closed unchanged at RM4.46 with 9.66 million shares traded.