AirAsia April-June profit crashes 62%
22 Aug 2013 11:06 PM GMT
AirAsia, Asia's largest low-cost carrier by fleet size, said on Wednesday that its net profit slumped 62 per cent in the April-June quarter due to higher operating expenses and foreign-exchange losses on borrowings. Net profit was 58.35 million ringgit ($17.75 million) in the three months ending 30 June, falling year-on-year despite a 5.5 per cent rise in revenue, according to a filing with Malaysia's stock exchange.
It said challenges remained due to high prices for oil and aviation fuel.
'However, barring any unforeseen circumstances, the directors remain positive for the prospects of the group for the third quarter and the remainder of 2013,' it said.
The airline had reported a 39 percent year-on-year drop in profit in the first quarter. Rapidly growing AirAsia has set up subsidiary budget carriers in Indonesia, the Philippines and Thailand. It said each of the fledgling airlines saw significant revenue increases in the quarter. AirAsia has grown from two planes, when Tony Fernandes bought the then-struggling airline in 2001, to a total fleet of more than 120 A320s.
It said challenges remained due to high prices for oil and aviation fuel.
'However, barring any unforeseen circumstances, the directors remain positive for the prospects of the group for the third quarter and the remainder of 2013,' it said.
The airline had reported a 39 percent year-on-year drop in profit in the first quarter. Rapidly growing AirAsia has set up subsidiary budget carriers in Indonesia, the Philippines and Thailand. It said each of the fledgling airlines saw significant revenue increases in the quarter. AirAsia has grown from two planes, when Tony Fernandes bought the then-struggling airline in 2001, to a total fleet of more than 120 A320s.
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