AirAsia has recorded a 42 per cent increase in net profit for the second quarter of 2010, even as the carrier is set to delay the delivery of five A320s.
The company’s profit for the three months to the end of June came to RM199m (A$70m) as revenue increased by 26 per cent to RM941m (A$331m). Passenger numbers increased by 11 per cent to 3.9 million passengers and load factor increased by two points to 77 per cent. Cost per ASK increased slightly to US 3.62 cents per ASK (four Australian cents), reflecting largely higher fuel prices.
The company noted that its Thai Air Asia and Indonesia AirAsia affiliates both performed strongly, with increases in passengers and profits for the quarter. “A crucial factor in their amazing performance is the new deliveries of four A320s into their operations, which increased capacity, lowered operation costs and drove up efficiency,” said AirAsia CEO Tony Fernandes. “The increase in capacity helped meet a rise in passenger demand, and lent itself to an increase in average fares by 12 per cent and 23 per cent in Thailand and Indonesia respectively.”
In his outlook, Fernandes said that the airline was enjoying strong forward bookings and was continuing to grow its market, particularly in the Indian subcontinent. He also announced that it has deferred delivery of seven A320s which were due next year to 2015 due to capacity concerns at its Kuala Lumpur hub and in an effort to improve its gearing. The airline will not have to pay any penalties for the deferral.
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