Posted on: 30 August 2016 by Mark Howells
AirAsia Berhad has reported its results for the quarter ended 30 June 2016 (2Q16), including a 23% increase in revenue year-over-year to RM1.62 billion, driven by a 10% growth in passengers carried to 6.55 million across the same respective periods.
This passenger growth against a mere 1% growth in capacity growth means AirAsia recorded a load factor of 87%, an increase of 7 percentage points compared to 2Q16.
2Q16 also saw AirAsia record an operating profit of RM414.61 million and a net operating profit of RM 276.26 million, up 80% and 149% year-over-year respectively. Furthermore, AirAsia logged a profit after tax of RM341.88 million, up 41%.
Revenue per available seat kilometre reached 13.35 sen during 2Q16, an increase of 11% in comparison to 2Q15, with the average fare rising by 8% to RM153.
AirAsia Berhad’s CEO, Aireen Omar, commented, “We saw good year-over-year growth and earnings in this quarter despite it historically being our leanest. The highest growth seen among our ancillary products is the sale of inflight merchandise (up 400%), AirAsia Courier (up 86%) and connecting fees for our ‘Fly-Thru’ service (up 65% YoY). These led to the Company recording an ancillary income per passenger of RM48 during 2Q16 (up 5%). The Group recorded a 32% increase for Fly-Thru traffic, and Kuala Lumpur remains the largest transit hub with 83% AirAsia Group Fly-Thru traffic, marking a growth of 31% YoY.”
AirAsia’s cost per available seat kilometre was reported at 11.48 sen, marking a reduction of 2% year-over-year. The airline attributes this to the 21% lower fuel expenses, despite a 4% increase in fuel consumption.
This was partially offset by the 77% increase in lease expenses during 2Q16 due to 16 additional sale and leasebacks and an increase in maintenance and user charges.
Meanwhile, commenting on the Company’s outlook, AirAsia’s group CEO, Tony Fernandes, declared, “In Malaysia, demand remains extremely robust and we foresee this to improve in the coming quarters as consumer sentiment is picking up in the domestic economy. Indian travellers entering Malaysia grew by 34% year-over-year and this shows our brand strengthening in the Indian market as we mount more domestic and international flights there.” Overall, the AirAsia Group posted a 2Q16 revenue of RM2.77 billion and an operating profit of RM425.66 million. The Group’s profit before taxation for the quarter under review is recorded at RM212.42 million, while cash balances stood at RM2.71 billion.