Source: AFP Author: 02/27/2009
Subject Concerned: Airlines Aviation Fuel
Budget carrier AirAsia said on Feb. 27 that it sank into the red in the fourth quarter, but blamed the loss on one-off fuel hedging costs and said its performance had otherwise been "phenomenal".
The regional carrier said it lost 176.9 million ringgit (US$47.7 million) in the three months to December, compared to a profit of 245.7 million ringgit a year ago. There was an exceptional loss of 426 million ringgit.
"The group has unwound all the remaining fuel hedges," founder Tony Fernandes, adding that price commitments going forward would have been a "noose around our neck".
"If we took off that exceptional loss, we had a phenomenal quarter," he said, adding that revenues grew 32 per cent to 838 million ringgit while passenger numbers rose 21 per cent to 3.3 million.
"The core operating profit for the quarter was at 194 million ringgit, more than double the profits achieved in the same period last year despite operating in extreme economic uncertainty and significant cost pressures," he said.
AirAsia maintained its bullish outlook, saying it expects to carry 15-20 per cent more passengers in 2009 as more travellers - including corporate customers - switch from full-service carriers to budget airlines.