Thursday, May 24, 2012

Best Fit News: AirAsia's Earnings

Here are the numbers...

Here's the article on Star Biz: AirAsia net profit up on higher passenger volume
  • Thursday May 24, 2012
    AirAsia net profit up on higher passenger volume

    PETALING JAYA: AirAsia Bhd's net profit for its first quarter ended March 31 was up a marginal 0.3% to RM172.44mil against RM171.93mil in the same period last year, but revenue grew a more robust 10.9% to a record RM1.17bil from RM1.05bil led by higher passenger volumes.

    The airline's net operating profit increased 4% to RM167.97mil from RM161.9mil, while earnings per share was unchanged from a year ago at 6.2 sen.

    In the notes accompanying its financial results, AirAsia attributed the improvement in revenue to a 12% growth in passenger volume and 7% higher average fare of RM177 compared to RM164 achieved last year.

    Both its ancillary income per passenger and load factor were unchanged at RM40 and 80% respectively.

    Its capacity climbed 12% in the quarter under review to 6.06 million passengers from 5.42 million. Revenue per available seat km was 16.92 sen against cost per available seat km of 13.44 sen. This was on the back of a 9% increase in its average fuel price.

    The margins for its earnings before interest, taxes, depreciation, amortisation and rent as well as earnings before interest and taxes are at 35% and 21% respectively.

    “We have defied industry trends again by achieving a 4% growth in net operating profit. This remarkable performance, relative to our peers', signifies our resilient business model in the volatile and cyclical airline business coupled with the current stubborn high oil prices,” group CEO Tan Sri Tony Fernandes said in a statement.

    He added that AirAsia was able to equity account RM2.3mil from its soon-to-be-listed unit, Thai AirAsia, in the first quarter as the unrecognised losses in its Thai affiliate have been reversed.

    The group's cash from operations was RM100.5mil at end-March compared to RM538.2mil in the preceding quarter ended December 2011, while net cash flow amounted to RM47.9mil outflow as cash flows from investing and financing activities exceeded operating cash flows.

    Its total debt stood at RM7.5bil, with net debt at RM5.44bil after offsetting cash balances. This translates to a net gearing ratio of 1.26 times, 11% lower than the preceding quarter.

    In terms of its outlook, AirAsia said that based on the current forward booking trend, underlying passenger demand in the second quarter for the Malaysian, Thai and Indonesian operations remained positive.
Here's the other version or is it poison:
  • AirAsia 1Q profit flat on higher expenses
    In The Edge Financial Daily Today 2012
    Written by Chong Jin Hun
    Thursday, 24 May 2012 14:50

    KUALA LUMPUR: AirAsia Bhd’s 1Q net profit came in flat from a year earlier as higher revenue and foreign exchange (forex) gains failed to offset higher operating expenses and losses from its global units.

    In a statement to the exchange, the low-cost carrier said it posted a net profit of RM172.44 million in 1QFY12 ended March 31 against RM171.93 million previously while revenue rose 11% to RM1.17 billion from RM1.05 billion a year ago.

    “The outlook for 2Q should be seen in the context of the current high prices of oil and aviation fuel.

    “However, barring any unforeseen circumstances, the directors remain positive on the prospects of the group for 2Q and remainder of 2012,” AirAsia said.

    The company said operating expenses, which included costlier jet fuel, rose 10% to RM943.83 million in 1Q from RM854.3 million a year earlier. Bottom line was also helped by a significant increase in forex gains to RM83.58 million versus RM40.97 million previously.

    Quarter-on-quarter, 1QFY12 net profit rose 27% from RM135.66 million in 4QFY11 ended Dec 31 while revenue was down 8% from RM1.27 billion.

    AirAsia’s operating unit in Thailand was profitable in 1Q while its other three entities, each in Indonesia, the Philippines and Japan, had registered losses, the company said.

    Based on the current forward booking trend, the company said underlying passenger demand in 2Q for its operations across Malaysia, Thailand and Indonesia remains positive.

    “Load factors achieved in April were in line with the previous year in Malaysia and Thailand and slightly lower in Indonesia though with higher capacity aircraft.

    “Average fares were higher in Malaysia, in line with the previous year in Indonesia and slightly lower in Thailand,” AirAsia said.

    The budget airline said it will, in 2Q, take delivery of three A320 aircraft for its operations in Malaysia, Indonesia and Japan. The aircraft will be used to serve new routes from Bandung, Indonesia, and from Tokyo, Japan; and to increase frequency for current routes in Malaysia.

    This article appeared in The Edge Financial Daily, May 24, 2012.
Yeah, choose your own poison.....


    lmenwe said...

    Tony Fernandes is The Star's new director. Definitely The Star must write something good on AA.