Low cost carrier AirAsia´s net income more than doubled to 180 million ringgit, or $54 million, in the first quarter (three months ended September 30). (11/27/2007)
According to Tony Fernandes, Group Chief Executive Officer, AirAsia once again delivered record profit growth despite operating in a very difficult economic environment characterised by record fuel prices.
"This is our 23rd consecutive profitable quarter. This result shows the maturity of our marketing strategy whereby we are able to turn the traditionally weakest quarter and deliver strong results. Our new routes have performed beyond expectations, with the Kuala Lumpur-Shenzhen route proving to be the best ever in the airline´s history."
Total revenue for the quarter rose by 39% to RM462 million compared to RM332 million for the same period last year. Ticket sales grew by 38% to RM425 million as passenger numbers rose by 25%. Average fares were up by 10% and load factor was flat at 79%. Ancillary income rose by 54% to RM37 million, This performance reflects the increased service penetration and the success of our new product offerings. Due to the higher achieved average fares and ancillary income, yields was 10% higher than the same period last year.
"Our current fuel hedge is offsetting some of the impact of higher fuel prices. However, this fuel hedge will expire by the end of the year. We continue to look for opportunities to manage this period of extreme oil market volatility. But we are confident in managing the higher fuel price by increasing revenue from ancillary income and higher load factor," Fernandes said.