AirAsia Group Q1 net profit RM96m, declares 90c dividend


AirAsia Group Bhd posted net profit of RM96.09mil in the first quarter ended March 31, 2019 but surprised shareholders with a special dividend of 90 sen a share.

AirAsia Group Bhd posted net profit of RM96.09mil in the first quarter ended March 31, 2019 but surprised shareholders with a special dividend of 90 sen a share.

KUALA LUMPUR: AirAsia Group Bhd posted net profit of RM96.09mil in the first quarter ended March 31, 2019 but surprised shareholders with a special dividend of 90 sen a share.

The low -cost carrier said on Wednesday its net profit was lower than the RM1.14bil a year ago which included a gain on a partial disposal of a subsidiary of RM350.3mil and a remeasurement gain on the retained interest in a former subsidiary of RM534.7mil.

“The group revenue for the current quarter recorded a net profit before tax (NPBT) of RM214.3mil which  includes a RM92mil  foreign exchange gain,” it said. It was also mpacted by an additional charge of RM38.2 million on the adoption of MFRS 16. 

AirAsia Group said total group revenue grew 9% to RM2.78bil from RM2.55bil a year ago due to an 18% increase in total passengers carried and increase in load dactor from 87% to 88%. 

However, overall unit passenger revenue fell by by 3% from RM218 to RM212. 

It said in line with the growth in revenue, 1Q19's earnings before interest, tax, depreciation and amortisation (Ebitda) rose by 6% to RM678.4mil from RM642.9mil.

“The growth in revenue was offset by the increase of staff costs and user charges and related expenses in line with the increase in capacity of 17%, incurring more operations staff costs, route charges and landing charges. 

“Maintenance and overhaul also increased by 64% as higher provision for engine overhaul was made as a result of higher number of leased aircraft on the completion of sales and leaseback transaction in 4Q18. 

“Following the adoption of MFRS 16: Leases, aircraft operating lease expenses were no longer recognized as part of the income statement but as a reduction of lease liabilities. The aircraft operating lease expense were replaced by recognition of depreciation and interest,” it said.

“During the quarter, total group revenue grew 9%, from RM2.55bil recorded in 1Q18 to RM2.78bil in 1Q19,” it said, adding the growth was due to an 18% increase in total passengers carried and increase in load factor from 87% to 88%. 

“However, overall unit passenger revenue decreased by 3% from RM218 to RM212,” it said.

AirAsia also said Ebitda was rose by 6% to RM678.4mil from RM642.9mil. The growth in revenue was offset by the increase of staff costs and user charges and related expenses in line with the increase in capacity of 17%, incurring more operations staff costs, route charges and landing charges. 

It also said that maintenance and overhaul also increased by 64% as higher provision for engine overhaul was made as a result of higher number of leased aircraft on the completion of sales and leaseback transaction in 4Q18. 
 

Corporate News , Airlines