Malaysia budget carrier Air Asia profits up 4-pct, demand strong

Chandi Dharmaratne

May 25, 2012 (LBO) – Makaysia’s AirAsia, a low cost carrier said profits for the March 2012 rose 4 percent to 167.97 million Ringgit, with revenues growing 11 percent to 1.17 billion rigging. “We have defied industry trends again by achieving a 4 percent growth in net operating profit,” chief executive Tony Fernandes said in a statement.

“This remarkable performance, relative to our peers, signifies our resilient business model in the volatile and cyclical airline business coupled with the current stubborn high oil prices.”

He said the airline was liquid and gearing was 1.26 times and a cash balance of 2.06 billion ringgit.

The airline said demand for low-cost travel remains strong demonstrated by the maintained a high seat factor of 80 percent.

Cost, measured by cost per available seat per kilometer was reported at 13.44 sen (ringgit), a slight increase of 6 percent. Without fuel, a cost was 7.04 sen per kilometer.