AirAsia reports fourth quarter results
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Southeast Asia,
AirAsia,
finance
AirAsia Berhad is pleased to announce (27-Feb-09) the unaudited results for the fourth quarter ended 31-Dec-08 and provide a review of recent notable events and achievements.
Tony Fernandesy said:
“AirAsia produced a solid set of results in the fourth quarter with 32% revenue growth to RM838 million driven by robust passenger growth and ancillary income. The core operating profit for the quarter was at RM194 million, more than double the profits achieved in the same period last year despite operating in extreme economic uncertainty and significant cost pressures.
Passenger numbers grew by 21% to 3.3 million which affirms the resiliency of demand for our services. Load factor for the period was at 78%, slightly better than last year’s performance. Capacity addition for the fourth quarter was at 17%, which is lower than the average 32% achieved in the first nine months of the year, We have undertaken proactive steps to ensure our capacity deployment to match with market demands, This prudent approach has enabled us to increase yield (Rev per ASK) by 6% thanks to 7% higher average fare and strong contribution from ancillary income.
Ancillary income delivered 78% growth against the same period last year and the per passenger ancillary spend has increased by 47% to RM22.1 per passenger. Ancillary income now represents 8.8% of total revenue, 2.2 percentage points increase from the same period last year.
Unit cost was at 3.08 US cents per ASK, 10% lower than the same period last year stemming from economies of scale benefits and the fleet now consists of 100% new Airbus A320 aircraft. Fuel price for the quarter was at USD103.5 per barrel, this is a significant decrease from the peak prices experienced in the third quarter but it is still 3% higher than the same period last year. Unit cost excluding fuel proved by 25% to 1.25 US cents per ASK.
The Group has unwound all the remaining fuel hedges and have unwound some interest rate swaps relating to the aircraft term loans. We believe this is a prudent approach as it shields the Group from the burden of mark to market swings, frees up equity and protect our cashflow. The management has taken a bold decision to unwind as the Company is now enjoying much lower cost, preserves liquidity and begin 2009 with a substantially clean balance sheet. Due to the impact of this charge, the losses after taxation for the period was RM177 million.
For the full year 2008 accounted, revenue grew by 37% driven by 22% passenger growth to 11.8 million passengers and strong contribution from ancillary income. Yield was up by 10% driven by 11% increase in average fare. Unit cost was 9% higher mainly due to 47% increase in fuel price. The operating profit for the year was at RM171 million, 19% lower than the previous year. The losses after taxation in 2008 was RM472 million, after taking into account once off charges, foreign translation losses and deferred taxation.
Thai AirAsia has performed exceptionally well to counter the weakening consumer sentiment as a result of the domestic political disturbances and the temporary closure of Bangkok airport. The Thai operations delivered an operating of THB83 million (RM8.8 million). The Thai operation has outperformed the industry performance considerably and has captured significant market share – Thai now has 40% domestic market share, up from 34% in the beginning of 2008. Passengers are increasingly attracted to our low fares, our impressive safety track record, high quality service complemented by brand new aircraft and world class punctuality.
The Indonesian operation has turned profitable in the quarter under review and has produced an operating profit of IDR7.5 billion (RM2.4 million). The induction of four new Airbus A320 aircraft has helped to reduce cost, increase reliability and promote the popularity of our services. Yield has improved by 12% as compared to last year driven by 61% increase in average fare. Indonesia operation is expected to continue delivering profitable growth as we continue to rejuvenate the fleet with new Airbus A320 aircraft and drive down cost further.”
(c) Centre for Asia Pacific Aviation. Date posted: 02-Mar-09
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AirAsia reports fourth quarter results 
