AirAsia Group reports profit fall in the second quarter

posted on 29th August 2019 by Justin Burns
AirAsia Group reports profit fall in the second quarter

AirAsia Group Berhad has reported net profit fell by 85 per cent to MYR46.8 million (US$11 million) for the second quarter ending 30 June.

The group said this was due to rising maintenance expenses on leases aircraft, recent sale-and-leasebacks of its fleet, foreign exchange and changes in accounting standards.

AirAsia Group also saw a 53 per cent decline in operating profit to MYR207 million for the second quarter.

Revenue for the April-June period was up 20 per cent to MYR3.14 billion, driven by an 18 per cent rise in passenger numbers to 12.8 million and better unit passenger revenue.

Across its airline operations, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 14 per cent to MYR436 million, due to weaker figures posted by its Thai unit offsetting stronger performances in Indonesia, the Philippines and India.

AirAsia Group Berhad president for airlines, Bo Lingam said: “AirAsia continued to expand its influence across the region in 2Q2019, drawing market share from our competitors in most of the markets we are in, for both the domestic and international sectors.

“Despite expanding capacity by 19% YoY, load factor remained strong at 85%, demonstrating the growing appetite for air travel across the markets in which we operate.”

He said the company is “excited” to see the turnaround of AirAsia Indonesia, which returned to profitability and the improved performance of AirAsia Philippines, which saw profit increase “eightfold” on the back of growing passenger numbers.

“With our performance so far this year, we are positive on our target for all our Asean AOCs to be profitable this year,” he added.

Bo Lingam said the group continue with its growth strategy focusing on the Asean region and it plans for a net fleet growth of 20 aircraft across six AOCs this year, with nine aircraft expected to be delivered to AirAsia India. It also expects to receive in November its first Airbus A321neo.