What can one expect when the CEO is the one doing the goating.
Business Times: AirAsia has best first quarter
- The budget carrier's net profit grew 26 per cent to RM203.15 million in the three months ended March 31 2009
Busget carrier AirAsia Bhd (5099)is back in the black with a net profit of RM203.15 million in the first quarter of 2009, after posting two consecutive quarterly losses previously.
In the three months ended March 31 2009, its net profit grew 26 per cent as revenue increased 33 per cent to RM714.2 million due to better ancillary income and stronger passenger growth.
"This is our best first quarter ever and demand has continued in the second quarter," AirAsia group chief executive officer Datuk Seri Tony Fernandes told reporters at its quarterly briefing in Sepang yesterday.
Fernandes said AirAsia's outlook was positive as passenger growth continued. Seats sold year to date are up 21 per cent to 5.2 million.
"There is still demand if the price is right. The growth comes from low fares and we are well positioned because of our cost structure and marketing abilities," he said.
AirAsia targets to carry some 24 million passengers by the year-end and capture half of the market. Currently, it has 44 per cent market share.
The budget carrier will also see further growth with the liberalisation of air service between Malaysia and Singapore from June 1.
"We will be plying routes to Singapore from Penang, Langkawi, Miri and Tawau," Fernandes said.
He added that capacity and flight cuts by Asia's legacy carriers had created opportunities for AirAsia.
Owing to the lower traffic at many Asian airports, they are competing to secure AirAsia's business on more desirable terms for the airline, he said.
AirAsia saw its core operating profit surge to RM166 million in its first quarter, almost six times that a year ago.
Despite passenger travel seeing a decline globally, AirAsia has beaten all odds as its passenger numbers increased 21 per cent to 3.1 million. Load factor, however, declined 2 per cent to 70 per cent.
Ancillary income more than doubled to RM91 million, representing some 12.8 per cent of total revenue.
"The ancillary income will act as our buffer for future fuel increases as additional revenue from ancillary income is equivalent to US$30 (RM106) recovery in fuel price," Fernandes said.
Associate airline Thai AirAsia delivered operating profit of RM30.5 million, while its Indonesian affiliate posted RM11.5 million loss.
On Star business: AirAsia profit soars on high passenger growth
- Friday May 29, 2009
AirAsia profit soars on high passenger growth
Budget carrier’s operating profit jumps 591% to RM166mil in first quarter
SEPANG: AirAsia Bhd has posted an unaudited operating profit of RM166mil for the quarter ended March 31, a 591% jump against the previous corresponding period.
Group chief executive officer Datuk Tony Fernandes attributed the increase to robust passenger growth and ancillary income.
“These are the best first-quarter results ever by the company although we are facing a global economic slowdown and the A (H1N1) flu outbreak,” he said at AirAsia’s results briefing yesterday.
Revenue for the quarter grew 33% to RM714mil from RM525mil previously.
Fernandes said passenger numbers for the period grew 21% to 3.1 million as the carrier had successfully stimulated the market, captured share from competitors and launched new routes.
Ancillary income, a key area for growth, more than doubled to RM91mil due to the strong support of new services, including “Supersize” baggage and “Pick a Seat” assigned seating services launched during the period.
On overseas operations, Fernandes said Thai AirAsia had performed exceptionally well to counter the weakening domestic consumer sentiment as a result of the internal political disturbances. It posted an operating profit of RM30.5mil for the period.
AirAsia Indonesia, however, produced a small loss of RM11.5mil, he said.
On the market outlook, Fernandes said although many airlines cut capacity, terminated underperforming routes and retrenched staff, the situation provided unique long-term opportunities for AirAsia to grow rapidly, open new markets, win market share from competitors and speed up the pace of the industry consolidation.
“Our strategy to continuously conduct aggressive promotions and enhance customer service has been successful in driving strong traffic growth,” he said.
He added that AirAsia would continue to expand its market share as more people switched from legacy carriers to fly with AirAsia.
He said that based on forward booking trend in the second quarter, the underlying passenger demand remained robust and the ancillary income was also growing strongly.
In another development, AirAsia has been given extension of time to table its financial statements for the financial year ended Dec 31, 2008.
In a filing with Bursa Malaysia yesterday, AirAsia said the Companies Commission of Malaysia, via its letter dated May 20, had granted the company time extension to table its financial statement at its AGM on or before Aug 31.
The low-cost carrier said the extension was made in view of a proposed corporate exercise to obtain shareholders’ approval at an EGM to be held on the same date as the AGM for inter alia, financial assistance to associated companies and general mandate for recurrent related party transactions of revenue in nature.
AirAsia said it would issue its annual report on or before June 30 to comply with Bursa’s listing requirements.
This move was to reduce substantial administrative time, inconvenience and expenses associated with the convening of general meetings on an ad hoc basis, it added.
No mention about the one-off Rm48.53 million item gain?
No mention on how its earnings of 203 million was boosted by its deferred tax 'gain' of 79 million?
No mention of the forex gain LOSS of 90 million?
No more blaming Exceptional item drags down AirAsia Q4 results?
(Oops.. silly me.. there are no losses now... so no need to mention exceptional items. :D )
Truly incredible because aren't these exceptional items that drove AirAsia earnings to its best ever earnings?
How now my dearest Brown Cow?
Since everyone now can fly, would you want go flying? :D
See also last nights posting: AirAsia Announces Massive Profits!
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Older side note.
March 2009.
- “This ‘strong’ performance is purely ‘technical’ as the massive unwinding of the out-of-money fuel hedges and interest rates during 4Q (of which losses were regarded as ‘exceptional’) means AirAsia could immediately in 4Q benefit from the much lower spot fuel prices and current interest rates,” RHB Research added.It said that the airline’s clean up of its books could additionally put more strain on its already stretched balance sheet. (taken from article Differing views on AirAsia )
The results look good, although the story about the derivatives is very strange.
ReplyDeleteInteresting is that at the same time there is an announcement from Air Asia:
"The extension of time was made in view of a proposed corporate exercise to obtain shareholders’ approval at an Extraordinary General Meeting to be held on the same date as the AGM for inter alia, financial assistance to associated companies and general mandate for recurrent related party transactions of revenue in nature. The above is subject to the formalisation of the respective definitive agreements and further announcements will be made to Bursa Malaysia Securities Berhad (“Bursa Malaysia”) pursuant to paragraph 8.23 (2) (c) and Chapter 10 of the Listing Requirements of Bursa Malaysia."
Air Asia has more or less parked losses of hundreds of millions of RM in its companies in Thailand and Indonesia, without accounting for it. It does however gave huge loans to these same companies. In my humble opinion, you cant have both, either you top up your investments in those companies (and thus write of the losses so far), or you write off your loans (since these companies must have huge negative equity).
May be the accountants dont like the current situation anymore? It is all vague, but I would not be surprised. If that is the case Air Asia would have to write off 300+ million.