AirAsia records Q4 net loss on forex losses

PETALING JAYA: AirAsia Bhd will be deferring aircraft deliveries, selling older aircraft and refinancing aircraft through sale and leasebacks in a move to preserve cash, the group said as it announced a net loss of RM428.5 million for the quarter ended Dec 31, 2014 on RM647.6 million foreign exchange losses.
This was compared to a net profit of RM168.5 million for the same quarter in 2013. Operating profit,a measurement preferred by the airline, for the quarter was 11.5% higher at RM226.3 million, compared to RM202.9 milion.
The carrier saw 15% higher revenue of RM1.5 billion compared to RM1.3 billion.
Revenue growth was supported by consistent passenger numbers AirAsia said in its filing with Bursa Malaysia and a 17% increase in unit passenger revenues to RM218 as compared to RM187 achieved in 4Q13 . Ancillary income per passenger increased by 31 % to RM47 year -on-year.
The seat load factor was at 78 % , 7 percentage points below the same quarter of 2013.
In 2015 AirAsia group will be taking only 5 new aircraft deliveries from Airbus which will be deployed to Thailand, India and upcoming Japan market.
In a statement released yesterday, group CEO Tan Sri Tony Fernandes said the group is taking advantage of the low fuel price and hedging 50% of its fuel requirement for 2015 at an average of US$88 per barrel for jet kerosene, which brings its effective cost down to US$80.
Fuel accounts for around 50% of the group's total cost.
"AirAsia is in a good cash position and we have a strong balance sheet as 88% of the group's aircraft are owned and about 130 aircraft are on AirAsia Bhd's balance sheet. In 2015, the group is focusing on increasing its cash position further, through capacity management, and is looking at refinancing of older aircraft (e.g. through sale and leaseback) as well as selling of vintage aircraft and slots," Fernandes said.
The management has no plans on raising money from the equity market.
For the 12-month ended Dec 31, 2014 the group made saw a 77% drop in net profit to RM82.8 million compared to RM362.1 million for the previous year.
This was despite revenue some 5% higher at RM5.4 billion, compared to RM5.1 billion from the previous year.
Revenue growth was supported by a 1% increase in passenger numbers and a 3% increase in unit passenger revenues to RM211 as compared to RM 204 achieved in FY13. Ancillary income per passenger increased by 15% to RM46 year-on-year. The seat load factor was at 79%, one percentage point below the same period quarter of 2013.