AirAsia Berhad has recorded a net income of RM130 million ($38 million) for the quarter ending 30 September 2009 -- a complete swing from the reported net loss of RM466 million ($138 million) for the same period last year.

Published: 24 Nov 2009

AirAsia Berhad has recorded a net income of RM130 million ($38 million) for the quarter ending 30 September 2009 -- a complete swing from the reported net loss of RM466 million ($138 million) for the same period last year.

Group CEO Tony Fernandes acknowledged that revenue for the quarter was higher by four percent to RM740 million supported by 19 percent passenger growth to 3.8 million. The combined Malaysian, Thailand and Indonesian operations as a whole carried 24 percent more passengers to 5.9 million during the period.

Fernandes said that AirAsia’s focus on costs continues to deliver savings.

“While fuel remains volatile, we have continued to drive up productivity gains through investments in technology, contain airport and handling costs while the current low interest rate environment helps us to reduce the cost of aircraft financing,” he said.

Fernandes also highlighted the importance of ancillary income to AirAsia’s business strategy.

“Average fare was down in the third quarter but despite the significant drop, the contribution from ancillary income more than offset the impact of lower average fares. Ancillary income grew by 86 percent to RM130 million representing 20.4 percent of total revenues. This is the strategy going forward whereby our passengers will continue to enjoy low fares whilst we make it up from growing the ancillary sources. This strategy will shield the company from being overly exposed to airline specific risks and make the business more robust,” he added.

On the outlook, Fernandes said: “Based on the forward booking trend, the underlying passenger demand in the fourth quarter is positive. We are on course to achieve the group’s target of carrying 25 million guests for the full year 2009.”