AirAsia Q2 Net Profit Up 41 Percent

August 29, 2016

AirAsia’s second quarter net profit jumped 41 percent on strong passenger demand, increased aircraft lease income and lower fuel costs.

Net profit for the three months to end June was MYR341.9 million ringgit (USD$84.7 million), up from the previous year’s MYR243 million.

Revenue for the quarter was up 23 percent at MYR1.624 billion ringgit.

Fuel costs were down from MYR476.6 million ringgit to MYR376.2 million as the airline reported average fuel price down 24 percent in the quarter.

AirAsia saw 10 percent growth in the number of passengers carried and, with only a small increase in capacity, a 7 percentage point increase in seat load factor to 87 percent. In total it carried 6.545 million people.

Among AirAsia’s associated companies, Thai AirAsia recorded revenue of THB7.77 billion in 2Q16, a 13 percent lift from 2015.

Revenue in Indonesia was down 30 percent from the previous year at IDR887.4 billion as Indonesia AirAsia reduced its fleet size, with capacity down 37 percent.

Philippines revenue of PHP2.568 billion in 2Q16 was up 11 percent on higher passenger volumes.

Aircraft leasing subsidiary Asia Aviation Capital, which has a portfolio of 55 aircraft, posted revenue of USD$66.5 million compared to USD$11.7 million in the year-ago period.

AirAsia announced last week its board had approved plans to sell all or part of its Asia Aviation Capital stake.

(Airwise)