Malaysia’s AirAsia Group third-quarter operating profit halves as fuel costs bite

31

Get real time updates directly on you device, subscribe now.

Malaysia’s AirAsia Group third-quarter operating profit halves as fuel costs bite

Malaysia’s AirAsia Group third-quarter operating profit halves as fuel costs bite
2018-11-30 12:29:17

KUALA LUMPUR (Reuters) – AirAsia Group Bhd’s quarterly operating profit halved as higher fuel costs hurt the Malaysian flagship budget carrier.

Malaysia’s AirAsia Group third-quarter operating profit halves as fuel costs bite 1

An AirAsia Airbus A320-200 plane arrives at Kuala Lumpur International Airport 2 (KLIA2) in Sepang, Malaysia December 13, 2017. REUTERS/Lai Seng Sin/File Photo

Its operating profit came in at 253 million ringgit ($60.50 million), compared with 494 million ringgit a year earlier.

Its net profit for the quarter ended September, however, soared about 81 percent to 915.9 million ringgit ($219 million), largely on a one-off gain from the sale of a business and reversal of deferred tax liabilities.

The airline sold its remaining stake in its joint venture unit with travel platform Expedia Group Inc for $60 million, resulting in the one-off gain.

AirAsia said in its financial statement filed to the bourse that it also recorded a 515.4 million ringgit deferred tax asset linked to aircraft disposals during the quarter.

The airline’s average fuel price rose 50.1 percent over the quarter to $95 per barrel.

AirAsia said the operating environment in the fourth quarter was improving, in addition to the period being seasonally better for airlines due to holidays.

“All airline operators’ profitability have been affected by the higher global fuel prices this year,” it said.

The airline added it would maintain cost discipline in all areas, increase efficiency and “remain nimble in order to maintain healthy profit margins”.

It added that it was focused on turning around its Indonesia and Philippines operations in the fourth quarter and next year.

AirAsia has offshoots in Thailand, Indonesia, the Philippines, India and Japan in addition to its biggest operation in its home market.

In the third quarter, AirAsia filled 82 percent of its seats, down from 87 percent a year earlier, as it grew group capacity by 16 percent in an attempt to gain market share.

Last week, its long-haul arm AirAsia X Bhd reported a larger loss for its third quarter due to higher fuel prices. The carrier said it was working to mitigate the increase by boosting ancillary revenue and capacity.

($1 = 4.1830 ringgit)

Reporting by Liz Lee; Editing by Himani Sarkar

Our Standards:The Thomson Reuters Trust Principles.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.



Malaysia’s AirAsia Group third-quarter operating profit halves as fuel costs bite
2018-11-30 12:29:17

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

Get real time updates directly on you device, subscribe now.

Comments
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy