AirAsia logs best-ever profit with Thai unit listing

August 29, 2012 | 08:50

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Low cost carrier AirAsia Tuesday said its second-quarter net profit surged more than 10 times from a year earlier due to a one-time gain with the listing of Asia Aviation PCL.

Low cost carrier AirAsia Tuesday said its second-quarter net profit surged more than 10 times from a year earlier due to a one-time gain with the listing of Asia Aviation PCL

Net profit for Asia's largest budget carrier for the quarter ending June 30 was 1.19 billion ringgit ($381.1 million) compared with 104.3 million a year earlier, the company said in a filing to the Kuala Lumpur stock exchange.

It posted revenue of 1.18 billion ringgit, up 9.3 percent, from 1.08 billion.

AirAsia said it recorded a 120.1 million ringgit gain after reducing its stake in Thai AirAsia to 45 percent from 49 percent prior to the listing of Asia Aviation PCL in Thailand in May. Asia Aviation is the major shareholder of Thai AirAsia.

AirAsia also posted an additional gain of 1.04 billion ringgit on the 45 percent stake in Thai AirAsia.

"Despite the majority of airlines losing money or severely behind in their earnings, AirAsia has continued to outperform each quarter," Aireen Omar, AirAsia's new CEO said.

The outlook for the rest of the year remained bright, she said.

The discount carrier which is one of the biggest customers of European aircraft manufacturer Airbus has a fleet of 58 new A320s.

It had recorded a net profit of 167.97 million ringgit for the previous quarter ending March 31.

AirAsia last month announced that it would buy Indonesia's Batavia Air for $80 million, as the carrier spreads its wings in Southeast Asia's largest economy.

AirAsia has set up subsidiary budget carriers in Indonesia, the Philippines, Thailand and in Japan.

Meanwhile rival carrier Malaysia Airlines last month reported its sixth straight quarterly loss on forex losses and declining revenue, losing 348.7 million ringgit ($111.7 million).

AFP

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