AirAsia net income up 18% in 2011

AirAsia Berhad has reported full year results for the financial year ended 31 December 2011 including a core net income of RM880.78 million, up 18% from the core net income of RM749.32 million in 2010.

The company posted record revenues of RM4.47 billion, an increase of 13% over the revenue of RM3.95 billion reported in 2010. Operating profit in 2011 was RM1.20 billion, up 12% from the operating profit of RM1.07 billion achieved in the previous year.

Group CEO Tony Fernandes declared, “We are proud to achieve an increase of 12% in operating profit and increase of 18% in core net income for 2011. This is remarkable in an environment where macroeconomic factors such as fuel prices have impacted us and every other airline.

“Average fuel prices have substantially increased by 36% over the year. Even though fuel costs make up 50% of our total cost, our resilient business model, focus on cost control, and an efficient operation has enabled us to sustain high EBITDAR and EBIT margins,” Fernandes noted, referring to the EBITDAR margin of 41% and EBIT margin of 27% for 2011.

Cost per available seat per kilometre (CASK) was reported at 12.56 sen, a slight increase of 6% year-on-year. However, CASK, ex-fuel, stood at 5.99 sen, a year-on-year reduction of 13%.

"The decline in profit after tax was primarily due to the unrealised foreign exchange losses on translation, which is required for reporting purposes under the accounting standards,” Fernandes explained. “Our full year results indicated that we were on the right path – that is, we managed matters that were within our control.”

“2011 was a momentous year for AirAsia. We celebrated our 10th year of delivering our brand promise of low fares, living up to our pledge of “Now Everyone Can Fly” to more than 135 million passengers across the region. We flew into new destinations expanding our route network and increased frequencies on high demand routes, reaffirming our leading market share. We achieved our target load factor of 80% underpinning the strong demand for air travel. Results so far are beyond our expectations and thus, we rewarded our loyal shareholders with a maiden dividend payout of 3 cents per ordinary share last year. AirAsia also placed a historic firm order for 200 A320neos with Airbus in line with the huge potential growth,” said Fernandes.

On other income, Fernandes reported, “Ancillary income is up in all three of our operations for 2011: Malaysia AirAsia at RM45 per passenger (up 2% YoY); AirAsia Thailand at THB383 per passenger (up 29% YoY); and AirAsia Indonesia at IDR136,650 per passenger (up 11% YoY). Although the increase in MAA’s ancillary income per pax is minimal due to the reclassification of AirAsiaGo as a share of profits from associates, ancillary income will continue to be the driving force for AirAsia to grow further as we roll out more exciting initiatives this year”.

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