AirAsia back in the black in Q3 with RM353.9m net profit

PETALING JAYA: AirAsia Bhd posted a net profit of RM353.89 million in the third quarter ended Sept 30, 2016 (Q3FY16), from a net loss of RM405.73 million in the same period last year, attributed mainly to higher aircraft operating lease income and a 22% reduction in the average fuel price.
Revenue was up 11.3% to RM1.69 billion from RM1.5 billion in the previous corresponding quarter due to higher growth in passenger volume and average fare.
For the nine months period, the low-cost carrier registered a net profit of RM1.57 billion against a net loss of RM13.37 million a year ago while revenue grew 20.9% to RM5 billion, from RM4.14 billion previously.
In a filing with Bursa Malaysia yesterday, AirAsia said its revenue during the quarter was supported by a 5% growth in passenger volume while the average fare was up 4% at RM164 compared with RM157 in Q3FY15.
On the cash flow position, AirAsia saw a net outflow of RM88.8 million as cash inflows from operating and investing activities were exceeded by cash outflows from financing activities.
As at end-September 2016, the group said, its total debt stood at RM10.3 billion, while its net debt after offsetting the cash balances amounted to RM8.8 billion.
Commenting on its prospects, Air Asia said it remains confident for the remaining quarter of 2016 as it continues to observe strong demand across most sectors due to the year-end holidays and festivities.
“In Malaysia, the fourth quarter of 2016 is showing an average forecast load factor of 89% as we continue to see strong demand and a better fare environment.”
“This is coupled with a favourable fuel price environment. In Thailand, load factor in the fourth quarter of 2016 is forecast to be 80%. As with Malaysia, we see encouraging forward bookings in the remaining quarter of 2016 stemming from the demand from winter holiday makers,” it added.