KUALA LUMPUR: AIRASIA BHD []'s earnings surged 835% to RM316.55 million in the fourth quarter ended Dec 31, 2010 from RM33.87 million a year ago while it was upbeat about its operations based on the current forward booking trend.
'The underlying passenger demand in the first and second quarters for the Malaysian, Thai and Indonesian operations remains positive,' it said on Thursday, Feb 24.
Despite the upbeat outlook for the sector, it was somewhat cautious about the spike in crude oil prices, and said it would 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'.
Reviewing its operations in the 4Q, it said the 4Q10 earnings were however lower by RM10.7 million compared to the RM327.3 million in earnings in 3Q10.
When compared to 4Q09, the low-cost carrier said 4Q10 revenue rose 32.7% to RM1.186 billion from RM894.06 million. Earnings per share were 11.50 sen compared with 1.40 sen.
'The revenue growth was supported by 11% growth in passenger volumes and average fare that was 7% higher at RM188 as compared to RM176 achieved in 4Q09. Seat load factor was 3 percentage points higher at 82% compared to 79% in the same period last year,' it said.
AirAsia said the group's core operating profit for the period was RM332.8 million, a 147% increase over the core operating profit in 4Q09.
It said the core operating profit margin for the period was at 28.1%, 13 percentage points higher than the 15.1% core operating profit margin achieved in 4Q09.
'There were RM12.2 million of unrealised translation losses in the quarter, the ringgit having remained steady against the US dollar during the period,' it said.
AirAsia said the group's total debt as of end of Dec 31, 2010 was RM7.857 billion. The group's net debt after offsetting the cash balances amounted to RM6.365 billion. This translated to a net gearing ratio of 1.75 times, 8% lower than the immediately preceding quarter.
The group achieved a profit after taxation of RM316.6 million for the quarter under review.
For the financial year ended Dec 31, 2010, its net profit jumped 110% to RM1.066 billion from RM506.26 million in FY09. Revenue rose 25% to RM3.992 billion from RM3.178 billion.
On the outlook, it saidbased on the current forward booking trend, the underlying passenger demand in the first and second quarters for the Malaysian, Thai and Indonesian operations remains positive.
'Load factors achieved in the month of January were ahead of the prior year for all three carriers, and there are continued improvements in yield, compared to the prior year,' it said.
AirAsia said in Thailand, the first quarter is expected to be strong, being the peak season for tourist arrivals when demand for travel is high. Thailand is expected to deliver a strong first quarter with high load factors.
It said a new hub in Chiang Mai commenced in January and is operating new routes which are performing well. The second quarter in Thailand is expected to be significantly better than the prior year, a result of political stability and improved demand.
As for Indonesia, it said the next two quarters will remain strong with more international destinations planned from the Medan Hub in the first quarter of the year.
The abolition of the travel tax for Indonesians flying abroad, which took effect on 1 January 2011, has boosted international sectors and additional frequency is planned for the second quarter to cope with demand.
It said the Group will take delivery of 3 A320 aircraft in the first quarter of the year, one of which will be operated in Thailand and two in Indonesia. The new aircraft will replace the B737's and will provide additional capacity across the network.
'Six new routes are planned across the network in the first quarter, in conjunction with additional frequency on existing routes.
'The aforementioned outlook must be seen in the context of the recent sharp rises in the price of oil and aviation fuel which have resulted from events in the Middle East,' it said.
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'The underlying passenger demand in the first and second quarters for the Malaysian, Thai and Indonesian operations remains positive,' it said on Thursday, Feb 24.
Despite the upbeat outlook for the sector, it was somewhat cautious about the spike in crude oil prices, and said it would 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'.
Reviewing its operations in the 4Q, it said the 4Q10 earnings were however lower by RM10.7 million compared to the RM327.3 million in earnings in 3Q10.
When compared to 4Q09, the low-cost carrier said 4Q10 revenue rose 32.7% to RM1.186 billion from RM894.06 million. Earnings per share were 11.50 sen compared with 1.40 sen.
'The revenue growth was supported by 11% growth in passenger volumes and average fare that was 7% higher at RM188 as compared to RM176 achieved in 4Q09. Seat load factor was 3 percentage points higher at 82% compared to 79% in the same period last year,' it said.
AirAsia said the group's core operating profit for the period was RM332.8 million, a 147% increase over the core operating profit in 4Q09.
It said the core operating profit margin for the period was at 28.1%, 13 percentage points higher than the 15.1% core operating profit margin achieved in 4Q09.
'There were RM12.2 million of unrealised translation losses in the quarter, the ringgit having remained steady against the US dollar during the period,' it said.
AirAsia said the group's total debt as of end of Dec 31, 2010 was RM7.857 billion. The group's net debt after offsetting the cash balances amounted to RM6.365 billion. This translated to a net gearing ratio of 1.75 times, 8% lower than the immediately preceding quarter.
The group achieved a profit after taxation of RM316.6 million for the quarter under review.
For the financial year ended Dec 31, 2010, its net profit jumped 110% to RM1.066 billion from RM506.26 million in FY09. Revenue rose 25% to RM3.992 billion from RM3.178 billion.
On the outlook, it saidbased on the current forward booking trend, the underlying passenger demand in the first and second quarters for the Malaysian, Thai and Indonesian operations remains positive.
'Load factors achieved in the month of January were ahead of the prior year for all three carriers, and there are continued improvements in yield, compared to the prior year,' it said.
AirAsia said in Thailand, the first quarter is expected to be strong, being the peak season for tourist arrivals when demand for travel is high. Thailand is expected to deliver a strong first quarter with high load factors.
It said a new hub in Chiang Mai commenced in January and is operating new routes which are performing well. The second quarter in Thailand is expected to be significantly better than the prior year, a result of political stability and improved demand.
As for Indonesia, it said the next two quarters will remain strong with more international destinations planned from the Medan Hub in the first quarter of the year.
The abolition of the travel tax for Indonesians flying abroad, which took effect on 1 January 2011, has boosted international sectors and additional frequency is planned for the second quarter to cope with demand.
It said the Group will take delivery of 3 A320 aircraft in the first quarter of the year, one of which will be operated in Thailand and two in Indonesia. The new aircraft will replace the B737's and will provide additional capacity across the network.
'Six new routes are planned across the network in the first quarter, in conjunction with additional frequency on existing routes.
'The aforementioned outlook must be seen in the context of the recent sharp rises in the price of oil and aviation fuel which have resulted from events in the Middle East,' it said.
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