The projects include building customer-obsessed data-backed models, providing visibility and improving efficiency across its operations, among others.
KUALA LUMPUR: Low-cost carrier AirAsia Bhd declared an special dividend of 40 sen a share as its net profit jumped 81.2% in the third quarter ended Sept 30, 2018. The dividend will go ex on Dec 12.
In announced to Bursa Malaysia on Thursday its net profit rose to RM915.87mil from RM505.32mil a year ago due mainly to a one-off gain on the sale of Expedia and the reversal of deferred tax liabilities arising from the disposals of aircraft.
For Q3, AirAsia's revenue increased by 6.5% to RM2.61bil from RM2.44bil. Earnings per share were 27.40 sen compared with 15.10 sen.
“The growth was attributed to a 9% increase in total passengers carried. Overall unit passenger revenue increase by 1% as a result of average fare increase.
“Load factor was at 82% in 3Q18, compared to 87% in 3Q17, as the increase in passengers carried was lower than the 16% increase in capacity,” it said in the notes to the account.
AirAsia said its operating profit for 3Q18 fell to RM253mil from RM494mil a year ago “mainly due to the increase in fuel expenses”.
It said that excluding fuel expenses, costs were fairly well controlled, showing a reduction of 2% of CASK ex fuel.
The group’s cash inflow from operations was RM1.634bil compared to inflow of RM1.178bil in the immediate preceding quarter ended June 30, 2018.
“The net cash inflow for the quarter amounted to RM2,566bil mainly due to proceeds from disposals of aircrafts net off repayment of borrowings,” it said.
AirAsia Group’s total debt, including liabilities directly associated with assets held for sale, as of end of September 2018 was RM4.3bil.
It recorded RM515.4mil in deferred tax asset in the current financial period. The deferred tax assets increased as the difference between the net book value and tax written down value of property, plant and equipment decreased in the
period as a result of completion of the sale and leaseback transactions on the aircraft.
AirAsia said Thai AirAsia’s net operating loss was THB826.7mil in Q3, FY18, compared to an operating profit of THB391.5mil a year ago.
The net loss for Q3, FY18 was THB655.7mil compared to a net profit of THB472.1mil a yar ago.
“AirAsia Group Bhd has equity accounted our share of net loss of RM36.9mil (RM28.1 million profit in the quarter ended Sept 30, 2017) in the current period, as reflected in the income statement,” it said.
Meanwhile, its 49% owned AirAsia India incurred operating loss of INR2,915mil against INR168mil a year ago mainly due to the increase in Fuel Expenses.
“Excluding fuel expense, costs were fairly well controlled with CASK ex-fuel reducing to INR176.91 from INR186.08,” it said.
AirAsia India posted net loss of INR3,082.1mil in Q3 FY18 (Q3 2017 net loss of INR163.9mil).
As the group’s carrying amount of investment in AirAsia India had been reduced to zero, no further losses were equity accounted in AirAsia Group Bhd’s income statement.
“In accordance with MFRS128, any profits will only be recognised when a total of RM78.6mil of unrecognised losses have been reversed,” it said.
AirAsia Japan recorded a net loss of RM35.3mil in Q3 FY18 (Q3 FY17 net loss RM41.9mil) of which RM22.4mil (Q3 FY17: RM20.5mill) is equity accounted in the financial statements of the roup
For the nine months, its net profit jumped by 90.9% to RM2.419bil from RM1.267bil. Its revenue increased to RM7.78bil from RM7.095bil.
Recall that in March, AirAsia announced the disposal of its leasing unit, Asia Aviation Capital Ltd (AAC) to BBAM Ltd Partnership for US$1.18bil (RM4.619bil), and at that point, analysts were speculating a windfall for shareholders in the region of 60 sen to 70 sen a share.
The sale to BBAM, the world’s third-largest aircraft lessor, will see AirAsia raking in proceeds of RM3.8bil. The deal involves the sale of 182 current and future aircraft with engines.
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