PETALING JAYA: AirAsia Group Bhd’s net profit for its second quarter ended June 30, dropped to RM17.94mil from RM361.81mil in the previous corresponding period, mainly due to a share of prior years’ losses at AirAsia India previously not recognised amounting to RM147mil.
In a statement, the low-cost carrier said the lower earnings were also due to additional cost related to building up RedBeat Ventures entities; 105% higher maintenance and overhaul expenses due to higher maintenance provisions of RM160mil on the back of a higher number of leased aircraft following the recent aircraft-monetisation exercise; and a RM10mil fine from the competition watchdog.
Revenue in the quarter, however, increased to RM3.14bil from RM2.62bil a year earlier.
“The growth was mainly attributed to an 18% increase in total passengers carried and a 2% increase in unit passenger revenue of RM222 from RM217 previously, ” AirAsia said.It added that revenue per available seat kilometre (RASK) for the consolidated group grew 4% to 15.40 sen in the second quarter.
“The increase in RASK was driven by firm demand, with load factor remaining strong at 85% despite a substantial 17% increase in available seat kilometres. AirAsia continues to dominate the Malaysian market, as domestic market share and international market share each increased by five percentage points year-on-year to 62% and 50%, respectively.”
Cost per available seat kilometre including fuel increased to 15.77 sen in the second half of 2019,15% higher than the 13.77 sen of the previous corresponding period, mainly due to higher maintenance and overhaul provisions.
“Costs were further put under pressure due to the depreciation of the ringgit and rupiah, which fell by 4.5% and 1.3% against the dollar, respectively, ” said AirAsia.
For the six-month period, net profit fell to RM110.20mil from RM1.50bil in the previous corresponding period.
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