AirAsia Q3 profit rises, outlook optimistic

AirAsia, Asia’s largest low-cost carrier by fleet size, said Wednesday its third-quarter net profit rose 3.6 percent year-on-year thanks to increased usage despite a rise in fuel prices. with 152.3 million a year earlier, the company said in a statement. It posted record quarterly revenue of 1.24 billion ringgit, up 14 percent from 1.08 billion. “The growth was attributed to the increase in the number of passengers carried, which grew nine percent to 4.75 million, and increase in capacity as the number of aircraft operating in Malaysia increased to 59,” the airline said in a statement. New CEO Aireen Omar said in the statement the airline’s cash position remains strong with 2.2 billion ringgit in cash and bank balances. “AirAsia continues to outperform each quarter with strong growth in net operating profit, which has increased 18 percent and led to a four percent increase in profit after tax year-on-year,” she said. Aireen said the airline was expected to post another impressive quarter in October-December. “The fourth quarter is predominantly our strongest quarter. We will continue to launch more routes and add more frequencies to cater to the high demand,” she said. AirAsia has set up subsidiary budget carriers in Indonesia, the Philippines, Thailand and Japan. The discount carrier, one of the biggest customers for European aircraft maker Airbus, has a fleet of 112 A320s and is expecting 266 more aircraft to be delivered up to 2026. The airline has said it was in discussions to buy an additional 100 aircraft to support its rapid growth in Asia.