AirAsia's 2011 net profit falls by almost half | Inquirer Business

AirAsia’s 2011 net profit falls by almost half

/ 11:00 PM February 22, 2012

KUALA LUMPUR—Southeast Asia’s largest budget carrier AirAsia on Wednesday reported a fall in net profit by almost half in 2011 on year as it struggled with high fuel prices, but posted a record revenue.

The Malaysia-based airline posted a revenue of 4.47 billion ringgit ($1.48 billion) for the year, up 13 percent from 2010.

In a filing to Malaysia’s stock exchange, it said net profit for the financial year, which ended on December 31, was 564.1 million ringgit, compared to 1.06 billion ringgit in 2010.

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AirAsia Chief Executive Tony Fernandes said the results were positive given the challenging global environment.

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He said the loss in net profit was largely due to unrealized foreign exchange losses on translation and a deferred taxation.

“Our full year results indicated that we were on the right path – that is, we managed matters that were within our control,” he said.

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“This is remarkable in an environment where macroeconomic factors such as fuel prices have impacted us and every other airline,” he added.

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He noted average fuel prices increased 36 percent over the year, accounting for half of the airline’s total cost.

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Net profit for the fourth quarter slumped 56.4 percent to 135.7 million ringgit year on year.

Fernandes said the outlook for the 10-year-old airline was positive as the company looks forward to the listing of AirAsia Thailand and AirAsia Indonesia this year.

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The airline is also expected to take delivery of 20 new A320 Classics in 2012.

Malaysia-based AirAsia has become one of the airline industry’s biggest success stories after Fernandes acquired the company a decade ago, when it was failing.

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Its 2010 full-year net profit nearly doubled compared to 2009.

TAGS: AirAsia, Airline, company, Earnings, Malaysia

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