AirAsia posts Q2 net profit of RM367m, boost from forex gains
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KUALA LUMPUR: AirAsia Bhd group posted net profit of RM367.15mil in the second quarter ended June 30, 2014, up nearly 530% from the RM58.34mil a year ago, boosted by foreign exchange gains.
The low-cost carrier said on Wednesday the forex gains on borrowings jumped to RM202.92mil, a stark contrast from the forex loss of RM122.19mil a year ago.
However, its operating profit fell to RM174.18mil from RM210.09mil a year ago. AirAsia attributed the lower operating profit to higher aircraft fuel expenses, which rose to RM581.71mil compared with RM498.61mil a year ago.
Its revenue rose 5.1% to RM1.311bil from RM1.246bil a year ago. Earnings per share were 13.20 sen compared with 2.10 sen.
"The revenue growth was supported by a 1% growth in passenger volume while the average fare was down 1% at RM157 as compared to RM159 achieved in 2Q13.
"Ancillary income per passenger increased by 13% to RM45 year-on-year. The seat load factor was at 80% which is consistent with the same period last year," it said.
It pointed out the group's cash used in operations was RM89.2mil, compared to cash from operations of RM78.8mil in the immediate preceding quarter ended March 31, 2014.
"Net cash flow in the quarter amounted to a RM153.5mil outflow, as cash out flows from investing and operations activities exceeded financing cash in flows," it said.
AirAsia said for the first half ended June 30, its earnings rose 210% to RM506.87mil from RM163.14mil in the previous corresponding period.
Operating profit was RM401.21mil compared with RM456.68mil a year ago. Fuel expenses rose to RM1.112bil from RM1.021bil. Its revenue was higher by 2.6% to RM2.613bil from RM2.547bil.
Commenting on the prospects, AirAsia said the group will take delivery of eight A320 aircraft in the third quarter of the year, where four will be deployed in Malaysia and three deployed in Thailand and one in India. During the same period two older aircraft will be disposed hence there will be a net increase of two aircraft in the Malaysian fleet.
"In Malaysia, forward loads for the remaining months of the third quarter of 2014 are lower than in the prior year with base fares lower in August 2014 as compared to August 2013 and higher in September 2014 as compared to September 2013.
"In the full quarter passenger numbers and fares are expected to be broadly in line with the previous year, reflecting better price discipline in the market. In addition, there has been a change in booking patterns in the Malaysian market, with passengers tending to book closer to the time of departure," it said.
As for Thailand, it said forward loads for the remaining months of the third quarter of 2014 are slightly lower than the prior year with average fares also lower than the prior year, a reflection of the current political unrest in the country.
AirAsia added TAA will continue to focus on domestic, southern China and Indo-China routes in the remaining quarters of 2014.
As for Indonesia AirAsia, it will maintain fleet size in the third quarter with no additional aircraft, thereby reducing the rate of capacity growth.
Forward loads in Indonesia are higher than in the prior year for the remaining months of the third quarter with average fares that are significantly higher. The recent presidential elections in Indonesia did not have any negative impact on the Indonesian economy.
In the Philippines, AirAsia said forward loads for the remaining months of the third quarter 2014 are slightly higher than in the prior year with based fares in the months of July and August 2014 higher than in the previous year.
"Tourist arrivals in the Philippines continue to post remarkable growth which augurs well for AirAsia and the aviation industry," it said.
"The outlook for the second half of 2014 should be seen in the context of the current prices of oil and aviation fuel. The operating environment in both Indonesia and the Philippines remains challenging, but an improved performance is expected in the remainder of the year. However, barring any unforeseen circumstances, prospects of the Group remain positive for the second half of 2014," it said.
