AirAsia Q4 net profit down but full-year earnings soar

PETALING JAYA: AirAsia Bhd’s net profit for the fourth quarter ended Dec 31, 2016 fell 16% to RM465.32 million from RM554.11 million a year ago due to lower revenue with a 48% cut in aircraft operating lease income and impairment of investment in associates.

The group recorded revenue of RM1.94 billion for the quarter, 11% lower than the RM2.17 billion recorded in the same quarter of the previous year.

For the full year, net profit jumped over threefold to RM2.04 billion from RM541.19 million a year ago on foreign exchange gain of RM481.7 million and a RM156.8 million share of results from its associates.

The group recorded revenue of RM6.92 billion for FY16, 10% higher than the RM6.3 billion recorded in FY15, driven by growth in passenger volume.

"Barring any unforeseen circumstances, the directors remain positive for the prospects of the group in 2017," AirAsia said.

Meanwhile, AirAsia Group, consisting of AirAsia Bhd and associate airlines in Thailand, Indonesia, Philippines, India and Japan, posted combined revenue of RM12.02 billion for FY2016 compared with RM10.79 billion in the previous financial year. Operating profit for the group was reported at RM2.15 billion, up 24% from the previous year.

AirAsia Bhd, Thai AirAsia and Indonesia AirAsia made a positive contribution to operating profit, with Indonesia AirAsia reporting its first profitable full financial year following the turnaround.