AirAsia Reports Q1 Profit

AirAsia has reported a profit after tax of RM 224,110 million for the first quarter of 2010. The company’s revenue for the quarter ending 31 March 2010, was up by 10% year-on-year from Q1 2009 – from RM 797,131 million to RM 878,041 million. Passenger growth registered a healthy 17.1% increase to 3.7 million passengers.

The other major highlights of the quarter were the sustained turnaround in the group’s Thailand and Indonesian operations, and the 31% jump in ancillary income. Ancillary income contributed 16% to the Company’s total revenue, with its best-ever performance that easily surpassed the contributions in each of the previous four quarters.

“The results in Thailand and Indonesia and the contribution from Ancillary are an endorsement of the strategic shifts we put in place in 2009. Thai AirAsia is now the largest domestic carrier in Thailand, while Indonesia’s improved performance is based on a realignment of its routes towards higher-yielding international flights,” said AirAsia Group CEO, Tony Fernandes.

On the operations in Thailand, AirAsia Thailand generated revenue of THB 3,108 million, recording 30% growth year-on-year and profit after tax was up by 35% year-on-year. AirAsia Thailand also registered a 25% growth in passenger volume.

 “It’s an amazing performance, and validates our strong belief that AirAsia Thailand is more than capable of weathering whatever challenges come its way and still post impressive numbers. These efforts will also get a powerful boost with the transition to an all-Airbus fleet in Thailand by the third quarter of this year,” Fernandes said.

Revenue at the Indonesian operation grew by 37% year-on-year. The positive growth of 107% profit after tax is attributed to higher passenger volume and ancillary income.

“As for Ancillary, we are well on the way to the target of RM 40 spending per pax that we set for ourselves. The numbers reaffirm our conviction that Ancillary is a revenue stream that can boost our bottom line and also serve as a buffer to rising fuel prices,” Fernandes said.

Shifting the focus to AirAsia Berhad, Fernandes said, “Passenger load factor stood at 74%, up from 70% year-on-year despite a capacity increase of 11.1%. This demonstrates that our capacity growth is in line with market demand. Cost/ASK of US 3.42 cents increased y-o-y but is mainly attributed to the rise in average fuel cost. Average fuel price in 1Q09 was US$57 vs 1Q10 of US$ 84 per barrel.”

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