Forex losses drag down AirAsia in fourth quarter

AirAsia chief executive officer Aireen Omar(filepic) highlighted in a filing with Bursa Malaysia that in the last quarter of 2014, competitors began acting more rational and started driving fares up. This allowed AirAsia to do the same.

PETALING JAYA: AirAsia Bhd slipped into the red with a net loss of RM428.51mil for its fourth quarter to Dec 31, 2014, from a net profit of RM168.5mil previously. Revenue increased 15.79% to RM1.48bil.

The losses were mainly due to foreign exchange losses amounting to RM647.56mil. At the operating level, AirAsia was profitable, recording an operating profit of RM226.30mil. The net loss does not represent the financial performance of the business, but is only an accounting entry for the forex losses.