AirAsia Bhd’s net profit for its second quarter ended June 30, soared 41% to RM342.12mil from RM243.03mil in the previous corresponding period, boosted mainly by the increase in aircraft operating lease income and reduction in the average fuel price to US$59 (RM236) per barrel in the second quarter of 2016 from US$78 (RM312) a year earlier.
Revenue in the second quarter increased to RM1.62bil from RM1.32bil in the previous corresponding period.
On the performance of its affiliates, the low-cost carrier said in a statement yesterday that Thai AirAsia posted a revenue of 7.77 billion baht in the second quarter, an increase of 13% from the same period last year, while net operating profit increased by 69% year-on-year (y-o-y) to 671.80 million baht.
“This led the associate to post a profit after tax of 767.56 million baht (up 105% y-o-y) in the second quarter of 2016.”
Indonesia AirAsia (IAA), meanwhile, recorded a revenue of 887.38 billion rupiah in the second quarter of 2016, down 30% y-o-y, which AirAsia said was in line with the planned 37% decrease in capacity.
Load factor recorded a 10-percentage point improvement to 83%. Meanwhile, IAA registered a lower net operating loss of 84.60 billion rupiah and a smaller loss after tax of 63.35 billion rupiah.
Separately, Philippines AirAsia posted an 11% increase in revenue at 2.57 billion peso and strong growth in the number of passengers carried.
“Load factor was at a high of 91%, up by 11 percentage points y-o-y. Cost per available seat kilometre increased by 1% to 2.53 peso due to the higher depreciation of property, plant and equipment and maintenance and overhaul cost.”
Meanwhile, AirAsia India recorded a 73% increase in revenue at 1.89 billion rupees and carried a higher number of passengers.
Commenting on the results, AirAsia chief executive officer (CEO) Aireen Omar said in the statement that the airline saw good growth and earnings in the second quarter despite it historically being the company’s leanest quarter.
“The highest growth seen among our ancillary products were the sales of in-flight merchandise which shot up 400% y-o-y, AirAsia Courier (up 86%) and connecting fees for our ‘Fly-Thru’ service (up 65%).
“These led to the company recording an ancillary income per pax of RM48 this quarter (up 5% y-o-y). The group recorded a 32% y-o-y increase for Fly-Thru traffic, and Kuala Lumpur remains the largest transit hub with 83% AirAsia Group Fly-Thru traffic with the growth of 31% y-o-y.”
For the six-month period ended June 30, 2016, the low-cost carrier’s net profit jumped to RM1.22bil from RM392.36mil a year earlier, while revenue increased to RM3.32bil from RM2.62bil in the previous corresponding period.
The group’s total debt as of end June 2016 was RM10.7bil, while its net debt after offsetting the cash balances amounted to RM9.2bil.
On the balance sheet, Aireen said the company’s net gearing ratio continued to show improvement quarter-on quarter, reported at 1.64 times at the end of the second quarter, which was 11% lower compared to the previous quarter due to a 2% decrease in total debt and higher total equity.
Commenting on the company’s outlook, AirAsia group CEO Tan Sri Tony Fernandes said based on the performance and trend for the first half of the year, he expected 2016 to be a “very good year for the company”.
AirAsia shares finished 2.05% higher to RM2.99 at yesterday’s close. The stock has risen more than two times since the beginning of the year.
Meanwhile, in confirming a StarBiz report yesterday, AirAsia said its board of directors had approved the divestment of Asia Aviation Capital Ltd (AAC), the carrier’s wholly owned aircraft leasing business.
AAC carries out the aircraft leasing business within the AirAsia group and with third-party airlines.
AirAsia has appointed RHB Investment Bank, Credit Suisse (Singapore) Ltd and BNP Paribas (acting through its Singapore branch) and BNP Paribas Capital (M) Sdn Bhd as joint advisers for the potential divestment.
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Revenue in the second quarter increased to RM1.62bil from RM1.32bil in the previous corresponding period.
On the performance of its affiliates, the low-cost carrier said in a statement yesterday that Thai AirAsia posted a revenue of 7.77 billion baht in the second quarter, an increase of 13% from the same period last year, while net operating profit increased by 69% year-on-year (y-o-y) to 671.80 million baht.
“This led the associate to post a profit after tax of 767.56 million baht (up 105% y-o-y) in the second quarter of 2016.”
Indonesia AirAsia (IAA), meanwhile, recorded a revenue of 887.38 billion rupiah in the second quarter of 2016, down 30% y-o-y, which AirAsia said was in line with the planned 37% decrease in capacity.
Load factor recorded a 10-percentage point improvement to 83%. Meanwhile, IAA registered a lower net operating loss of 84.60 billion rupiah and a smaller loss after tax of 63.35 billion rupiah.
Separately, Philippines AirAsia posted an 11% increase in revenue at 2.57 billion peso and strong growth in the number of passengers carried.
“Load factor was at a high of 91%, up by 11 percentage points y-o-y. Cost per available seat kilometre increased by 1% to 2.53 peso due to the higher depreciation of property, plant and equipment and maintenance and overhaul cost.”
Meanwhile, AirAsia India recorded a 73% increase in revenue at 1.89 billion rupees and carried a higher number of passengers.
Commenting on the results, AirAsia chief executive officer (CEO) Aireen Omar said in the statement that the airline saw good growth and earnings in the second quarter despite it historically being the company’s leanest quarter.
“The highest growth seen among our ancillary products were the sales of in-flight merchandise which shot up 400% y-o-y, AirAsia Courier (up 86%) and connecting fees for our ‘Fly-Thru’ service (up 65%).
“These led to the company recording an ancillary income per pax of RM48 this quarter (up 5% y-o-y). The group recorded a 32% y-o-y increase for Fly-Thru traffic, and Kuala Lumpur remains the largest transit hub with 83% AirAsia Group Fly-Thru traffic with the growth of 31% y-o-y.”
For the six-month period ended June 30, 2016, the low-cost carrier’s net profit jumped to RM1.22bil from RM392.36mil a year earlier, while revenue increased to RM3.32bil from RM2.62bil in the previous corresponding period.
The group’s total debt as of end June 2016 was RM10.7bil, while its net debt after offsetting the cash balances amounted to RM9.2bil.
On the balance sheet, Aireen said the company’s net gearing ratio continued to show improvement quarter-on quarter, reported at 1.64 times at the end of the second quarter, which was 11% lower compared to the previous quarter due to a 2% decrease in total debt and higher total equity.
Commenting on the company’s outlook, AirAsia group CEO Tan Sri Tony Fernandes said based on the performance and trend for the first half of the year, he expected 2016 to be a “very good year for the company”.
AirAsia shares finished 2.05% higher to RM2.99 at yesterday’s close. The stock has risen more than two times since the beginning of the year.
Meanwhile, in confirming a StarBiz report yesterday, AirAsia said its board of directors had approved the divestment of Asia Aviation Capital Ltd (AAC), the carrier’s wholly owned aircraft leasing business.
AAC carries out the aircraft leasing business within the AirAsia group and with third-party airlines.
AirAsia has appointed RHB Investment Bank, Credit Suisse (Singapore) Ltd and BNP Paribas (acting through its Singapore branch) and BNP Paribas Capital (M) Sdn Bhd as joint advisers for the potential divestment.
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