AirAsia\'s Profit Falls in Q3 over Fuel Costs

Malaysian budget carrier AirAsia said net profit slumped by more than half in the third quarter as fuel prices surged and warned that the next four months would also be challenging.

The report by the region’s biggest no-frills airline follows a third straight quarterly loss for Malaysian Airlines, which also suffered as a result of higher petrol costs. AirAsia said in a statement late Tuesday that net profit fell 53 percent to 152.3 million ringgit ($47.8 million) from 327.3 million for the same period last year.

Although revenue rose 9.9 percent to 1.08 billion ringgit from 979.7 million last year — aided by an 8.0 percent rise in passengers — it said fuel expenses spiralled 45 percent to 421.2 million and staff costs rose 38 percent to 126.3 million.

AirAsia said that based on forward booking trends, the three months to December for its Malaysian, Thai and Indonesian operations was positive but warned that the outlook “should be seen in the context of the current high price of oil and aviation fuel.”

It said that recently introduced fuel surcharges have “mitigated, but not fully offset, the effect of higher fuel prices.” On Monday Malaysia Airlines posted a net loss of 478 million ringgit for the quarter ended September 30. That followed losses of 242.3 million ringgit in the first three months of 2011 and 527 million ringgit in April-June period.

In August, Malaysia Airlines and AirAsia announced a surprise alliance that would eliminate head-to-head competition on some routes, allowing each to focus on their core markets. Analysts have hailed the deal, saying AirAsia will be able to concentrate on offering low-cost journeys, while Malaysia Airlines caters to more upmarket travellers.

AirAsia Chief Executive Tony Fernandes told analysts in a conference call that he expects both airlines to make an announcement on its collaboration in the first week of December, according to Dow Jones Newswires.

“We are looking at tremendous cost savings,” he said.

Related

Egypt's Islamist party backs down from demand to form government

CAIRO — The Muslim Brotherhood’s powerful political wing has backed down from demands that Egypt’s new parliament should have the right to quickly replace the military-appointed government. The secre...

Romney: ‘I like being able to fire people who provide services to me’

NASHUA, N.H. – Under assault from opponents painting him as a corporate predator, Mitt Romney came here Monday morning to defend his career in private equity but made a remark that seemed to underscor...

Egypt wrapping up free elections

CAIRO – Nearly one year after the ouster of Hosni Mubarak, Egyptians are concluding their first free and fair elections in decades in what analysts say is a good sign for a country wracked by poverty,...

Post a Comment

emo-but-icon
:noprob:
:smile:
:shy:
:trope:
:sneered:
:happy:
:escort:
:rapt:
:love:
:heart:
:angry:
:hate:
:sad:
:sigh:
:disappointed:
:cry:
:fear:
:surprise:
:unbelieve:
:shit:
:like:
:dislike:
:clap:
:cuff:
:fist:
:ok:
:file:
:link:
:place:
:contact:

Most Top Article

Follow Us

Hot in week

Hot in week

item