IATA director-general and chief executive officer Alexandre de Juniac said the global air transport industry was experiencing good momentum, given the solid safety performance and growing number of travellers.
KUALA LUMPUR: Low-cost carrier AirAsia group reported a 42.9% increase in earnings to RM505.32mil in the third quarter ended Sept 30, 2017 due to share of results from associates and lower deferred tax expenses.
It said on Wednesday the earnings had increased from the RM353.89mil a year ago. Its revenue increased by 45.1% to RM2.44bil from RM1.68bil. Earnings per share were 15.10 sen compared with 12.70 sen.
However, for the nine months, its earnings fell 19.4% to RM1.26bil from RM1.57bil in the previous corresponding period. Its revenue rose by 41% to RM7.05bil from RM5bil.
AirAsia said the group revenue and expenses increased significantly from the quarter ended 30 September 2016 (3Q16) due to the consolidation of Indonesia AirAsia (IAA) and Philippines AirAsia (PAA) during the previous quarter.
To provide a better overview of its financial performance, it included the proforma consolidated income statement and key operating statistics which included IAA and PAA.
In the notes to its accounts, AirAsia said group revenue rose 15% to RM2.447bil from RM2.131bil which was due to a 12% increase in total passengers carried. This was despite load factor dipped to 87% in 3Q17 compared to 88% in 3Q16.
Its operating profit fell 7% to RM494.33mil from RM529.34mil while net operating profit fell 8% to RM374.20mil from RM405.52mil.
Profit before tax rose 7% to RM486.03mil from RM4567.33mil due to share of results from associates of RM17.55mil compared with losses of RM32.30mil a year ago.
It said average fare has decreased 2% from RM176 in 3Q16 to RM172 in 3Q17, whilst the overall revenue available seat kilometres (RASK) remained flat at 14.76 sen in 3Q17 against 14.98 sen in 3Q16.
“During the quarter, the group has also delivered an additional 1,425,576 seat capacity as compared to 3Q16, which represent an additional 14% growth in seat capacity compared to 3Q16.
“This was achieved with the background of 4% increase in total fleet size of the group from 106 aircraft in 3Q16 to 110 aircraft in 3Q17,” it said.
AirAsia said the group's total net operating profits fell by 8% on-year to RM374.2mil mainly due to one-off items which were the depreciation on engine overhaul costs in IAA’s books of RM23.9mil; increase in maintenance activities and costs of PAA by approximately RM31mil million as a result of the depreciation of PHP and aircraft re-delivery. There was a net gain on disposal of aircraft recorded in 3Q16 of RM35.2mil.
“Net profit for the current quarter was 30% higher year-on-year at RM434.3mil as a result of lower deffered tax expenses compared to 3Q16,” it said.
AirAsia said the group’s cash inflow from operations was RM605.2mil versus the inflow of RM419.3mil in Q2 ended June 30, 2017. Net cash inflow in the quarter amounted to RM118.7mil.
The group’s total debt as of end of September 2017 was RM9.6bil. However, the group’s net debt after offsetting the cash balances amounted to RM7.4bil.
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