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AirAsia reports 73 percent jump in quarterly profit on strong passenger demand

AirAsia reports 73 percent jump in quarterly profit on strong passenger demand

Malaysian low-cost carrier, AirAsia, said Wednesday its net profit in the October-December surged 73 percent from a year ago as robust passenger demand helped offset the impact of high fuel prices.
Profit for the quarter reached 245.7 million ringgit (US$76.8 million; euro51 million) on the back of a 43 percent rise in revenue to 632.8 million ringgit (US$198 million; euro132 million), it said in a statement.
Passenger traffic rose 21 percent to 2.7 million during the quarter, said AirAsia, which is Southeast Asia's biggest budget carrier in terms of fleet.
This brought profit for the six months through December to 425.7 million ringgit (US$133 million; euro89 million), doubled from the same period a year earlier, it said.
From 2008, AirAsia said its accounting period will run from January to December. Previously, its fiscal year started in July.
The airline said volatile fuel prices remains a key challenge but it stays bullish on prospects in the current year.
It said it has hedged 30 percent of its fuel requirement for the first six months this year and projected a 20 percent growth in passenger traffic this year, up from 9.7 million passengers in 2007.
"The induction of six Airbus A320 aircraft during the period and the recent strengthening of the ringgit against the U.S. dollar will help to offset some of the impact of higher fuel prices," it said.
AirAsia has 39 aircraft at the end of December, up from 32 a year earlier. The airline said it will add more capacity over the next six months, which will be used to introduce several new destinations and increase frequency on existing routes.
It said both its Thai and Indonesian operations are showing signs of recovery and expected to improve significantly this year.


Updated : 2021-03-02 04:10 GMT+08:00