AirAsia revenue breaches RM1bil mark
Q4 profit up 8-fold on higher demand, yields
KUALA LUMPUR: AirAsia Bhd's net profit jumped more than eight-fold to RM316.5mil in the fourth quarter ended Dec 31, 2010 against RM33.9mil previously while its full-year earnings hit the RM1bil mark driven by higher passenger numbers and stronger yields.
Revenue for the quarter rose 33% to RM1.18bil from RM894mil a year ago while earnings per share jumped to 11.50 sen versus 1.50 previously.
The budget carrier's core operating profit for the period was RM332.8mil, a 147% increase over RM134.7mil posted a year ago.
Its earnings before interest, tax, depreciation and amortisation margin improved to 49.3% from 43.3% previously.
In a teleconference yesterday, group CEO Datuk Seri Tony Fernandes said AirAsia was in the best position financially that it has ever been in providing foundation for further expansion and growth in 2011.
He said AirAsia would continue its focus on lowering costs, improving returns and expanding its network.
Based on the current forward booking trend, Fernandes said the underlying passenger demand in the first and second quarters of this year for Malaysia, Thailand and Indonesia operations remained positive.
However, he said it must be seen in the context of the recent sharp rises in the price of oil and aviation fuel which had resulted from events in the Middle East.
“AirAsia will continue to monitor oil price movements, and the introduction of a fuel surcharge cannot be discounted if the current price is sustained or rises further,” Fernandes said.
For the full year, AirAsia's profit more than doubled to RM1.06bil, or 38.60 sen per share from RM506.3mil, or 20.60 sen per share despite average fuel prices surging 35% year-on-year to US$92 a barrel in 2010. Revenue for the period rose to RM3.99bil from RM3.2bil previously.
The revenue growth was supported by 13% growth in passenger volumes and average fare that was 5% higher at RM177 as compared to RM168 achieved in 2009. Meanwhile, its seat load factor was three percentage points higher at 78% compared to 75% in 2009.
The AirAsia group combining its Malaysian, Indonesian and Thai operations carried 25.7 million passengers, up 13.1% from the 22.7 million people it carried in 2009.
“What a year we've had. Not only did we achieve record profits, but also breached the billion-ringgit mark in net profit. With strong cash balances of RM1.5bil, our gearing levels decreased to 1.75 times compared with 2.57 times a year ago,” Fernandes said.
He said the increased contribution from ancillary income to the company's bottom line matched its passenger growth. “Ancillary has been a tremendous revenue stream for us. It's up in all three of our operations: Malaysia RM49 per pax; Thai AirAsia at 369 bahts per pax and Indonesian AirAsia at 155,089 rupiah per pax.”
“There's still a lot of potential in ancillary and we're constantly looking to increase the numbers,” he said, adding that its ancillary income had been a “great defend” for high oil prices.
He said every RM1 per pax spent provides about US$1 per barrel of buffer.
Fernandes said AirAsia might consider re-introducing the fuel surcharge which it removed in November 2008 if oil prices were to remain high.
“I do not want to jump the gun. Let the situation stabilise first and we will evaluate the situation,” he said when asked on the threshold of oil prices whereby AirAsia would introduce the fuel surcharge.
AirAsia has hedged up to 21% of its oil needs for the first half this year at an average of US$92.31 a barrel.
South-East Asia's largest low-cost airline by fleet size will take delivery of three A320 planes in the first quarter of this year, one of the aircraft will operate in Thailand and two in Indonesia.
The new aircraft would be used to replace the B737s and would provide additional capacity across the network. Six new routes are being planned across the network in the first quarter in conjunction with additional frequencies on existing routes.
“We have also recently announced our fleet delivery plans for 2012 whereby the group will take delivery of 14 aircraft from the proposed 24 as we adapt to changing circumstances,” Fernandes said, adding that the financing for eight aircraft to be delivered in 2011 had been secured.
At the end of December, AirAsia had 53 aircraft in its fleet, up from 48 in 2009.
Meanwhile, AirAsia is also planning initial public offerings (IPOs) for its Indonesian and Thai affiliates in both countries.
The IPOs, Fernandes said, were likely to go ahead in Indonesia and Thailand by the fourth quarter of this year, subject to market conditions.
He said the offerings were intended “to build a war chest” for future expansion, including new aircraft to raise profitability and expand operations in both markets.
The Indonesian IPO might aim to raise between US$150mil and US$200mil, he added.
He also said that it was close to receiving regulatory approval to start the Philippines AirAsia.
“AirAsia Philippines should launch its inaugural flights in the second half of the year. We believe there is enormous potential in the Philippines,” he said.
On its dividend, Fernandes said the board would likely make a decision on its first dividend payout in the next two to three weeks.
He said the airline had received strong demand from institutional investors to start paying dividends.
KUALA LUMPUR: AirAsia Bhd's net profit jumped more than eight-fold to RM316.5mil in the fourth quarter ended Dec 31, 2010 against RM33.9mil previously while its full-year earnings hit the RM1bil mark driven by higher passenger numbers and stronger yields.
Revenue for the quarter rose 33% to RM1.18bil from RM894mil a year ago while earnings per share jumped to 11.50 sen versus 1.50 previously.
The budget carrier's core operating profit for the period was RM332.8mil, a 147% increase over RM134.7mil posted a year ago.
Its earnings before interest, tax, depreciation and amortisation margin improved to 49.3% from 43.3% previously.
In a teleconference yesterday, group CEO Datuk Seri Tony Fernandes said AirAsia was in the best position financially that it has ever been in providing foundation for further expansion and growth in 2011.
He said AirAsia would continue its focus on lowering costs, improving returns and expanding its network.
However, he said it must be seen in the context of the recent sharp rises in the price of oil and aviation fuel which had resulted from events in the Middle East.
“AirAsia will continue to monitor oil price movements, and the introduction of a fuel surcharge cannot be discounted if the current price is sustained or rises further,” Fernandes said.
For the full year, AirAsia's profit more than doubled to RM1.06bil, or 38.60 sen per share from RM506.3mil, or 20.60 sen per share despite average fuel prices surging 35% year-on-year to US$92 a barrel in 2010. Revenue for the period rose to RM3.99bil from RM3.2bil previously.
The revenue growth was supported by 13% growth in passenger volumes and average fare that was 5% higher at RM177 as compared to RM168 achieved in 2009. Meanwhile, its seat load factor was three percentage points higher at 78% compared to 75% in 2009.
The AirAsia group combining its Malaysian, Indonesian and Thai operations carried 25.7 million passengers, up 13.1% from the 22.7 million people it carried in 2009.
“What a year we've had. Not only did we achieve record profits, but also breached the billion-ringgit mark in net profit. With strong cash balances of RM1.5bil, our gearing levels decreased to 1.75 times compared with 2.57 times a year ago,” Fernandes said.
He said the increased contribution from ancillary income to the company's bottom line matched its passenger growth. “Ancillary has been a tremendous revenue stream for us. It's up in all three of our operations: Malaysia RM49 per pax; Thai AirAsia at 369 bahts per pax and Indonesian AirAsia at 155,089 rupiah per pax.”
“There's still a lot of potential in ancillary and we're constantly looking to increase the numbers,” he said, adding that its ancillary income had been a “great defend” for high oil prices.
He said every RM1 per pax spent provides about US$1 per barrel of buffer.
Fernandes said AirAsia might consider re-introducing the fuel surcharge which it removed in November 2008 if oil prices were to remain high.
“I do not want to jump the gun. Let the situation stabilise first and we will evaluate the situation,” he said when asked on the threshold of oil prices whereby AirAsia would introduce the fuel surcharge.
AirAsia has hedged up to 21% of its oil needs for the first half this year at an average of US$92.31 a barrel.
South-East Asia's largest low-cost airline by fleet size will take delivery of three A320 planes in the first quarter of this year, one of the aircraft will operate in Thailand and two in Indonesia.
The new aircraft would be used to replace the B737s and would provide additional capacity across the network. Six new routes are being planned across the network in the first quarter in conjunction with additional frequencies on existing routes.
“We have also recently announced our fleet delivery plans for 2012 whereby the group will take delivery of 14 aircraft from the proposed 24 as we adapt to changing circumstances,” Fernandes said, adding that the financing for eight aircraft to be delivered in 2011 had been secured.
At the end of December, AirAsia had 53 aircraft in its fleet, up from 48 in 2009.
Meanwhile, AirAsia is also planning initial public offerings (IPOs) for its Indonesian and Thai affiliates in both countries.
The IPOs, Fernandes said, were likely to go ahead in Indonesia and Thailand by the fourth quarter of this year, subject to market conditions.
He said the offerings were intended “to build a war chest” for future expansion, including new aircraft to raise profitability and expand operations in both markets.
The Indonesian IPO might aim to raise between US$150mil and US$200mil, he added.
He also said that it was close to receiving regulatory approval to start the Philippines AirAsia.
“AirAsia Philippines should launch its inaugural flights in the second half of the year. We believe there is enormous potential in the Philippines,” he said.
On its dividend, Fernandes said the board would likely make a decision on its first dividend payout in the next two to three weeks.
He said the airline had received strong demand from institutional investors to start paying dividends.
Comments
Post a Comment