AirAsia profit down on higher costs

AirAsia profit down on higher costs

Malaysia-based budget carrier AirAsia has seen its second-quarter net profit fall mainly due to the weakening ringgit and higher costs.

The region’s biggest low-cost airline by fleet size said in a statement on Thursday its second quarter net profit was 243 million ringgit ($A80.38 million), down by 33.8 per cent year-on year.

The carrier posted a net profit of 367.2 million ringgit in the same period last year.

Its revenue remained mostly flat, rising just one per cent to 1.32 billion ringgit from 1.31 billion during the same period last year.

AirAsia is led by flamboyant boss Tony Fernandes, a former record industry executive who acquired the then-failing airline in 2001.

It has seen spectacular success and aggressive growth under his low-cost, low-overhead model.

Fernandes said he expected Malaysian operations to benefit from higher demand from Chinese passengers, as well as gaining an advantage with some competitors withdrawing routes that AirAsia operates in.

“Starting middle of August, there has been substantial capacity reduction and route cancellations by other players on the routes that AirAsia operates in,” he said.

“Demand from Chinese travellers has also recovered starting from May 2015 onwards and with fuel trending favourably for airlines, the stage is set for a good year end for the company.”

Loss-making AirAsia X, the long-haul arm of AirAsia, posted on Wednesday a net loss of 132.94 million ringgit.

During the same period last year, it posted a net loss of 128.79 million.

Latest News

  • Luxury

TravelManagers explore luxury trends at Signature Travel Network Global Conference

Representatives from TravelManagers Australia have concluded four days of collaboration, learning and networking with luxury travel brands at Signature Travel Network’s 2024 Annual Conference, which took place in Las Vegas. The annual event, which brings together members of Signature’s luxury travel advisor network, partners, travel media and experts, centred this year on “Leveraging the Signature […]

  • Aviation

Refurbed Adelaide Qantas Club opens doors to upgraded features

Qantas opened the doors to its upgraded Adelaide Qantas Club today, just in time for the busy holiday period to provide customers travelling through the city of churches with an improved experience. The contemporary space has been designed to celebrate the beauty of the South Australian landscape and features customised furniture by local designers Agostino […]

  • Cruise
  • Cruise Lines

PONANT opens Kimberley 2026 season with early-bird savings

PONANT has officially launched its 2026 Kimberley season, with travellers able to choose from 16 departures aboard luxury small expedition vessels Le Soléal or Le Jacques Cartier, with up to 30 per cent savings for early-bird bookings. Guests will experience spectacular waterfalls, ancient First Nation rock art and cultures, breathtaking whale-watching, and thrilling mangrove Zodiac […]

  • Travel Agents

ETC Cluster: Great Journeys New Zealand & TruTravels

Agents are invited to join Evolution Travel Collective for their next cluster update with the latest news from Great Journeys New Zealand & TruTravels. Michelle Daniels introduces the new Great Journeys New Zealand Scenic Plus product as well as a range of new tours & packages available on the beautiful railways of New Zealand. With […]

  • Cruise

CLIA shares new 2023 Global Cruise Industry Economic Impact Study

Cruise Lines International Association (CLIA) has shared the highlights from the association’s new 2023 Global Economic Impact Study at the annual CLIA Cruise Forward conference. The study revealed the highest-ever global economic impact from cruise tourism and reaffirmed that 2023 surpassed 2019 as the benchmark year for cruise industry performance. It also confirmed the cruise […]

  • Road & Rail

London Transport Commissioner takes an insider look at Sydney Metro

London’s Commissioner of Transport, Andy Lord, has toured the new Sydney Metro yesterday, hosted by the Tourism & Transport Forum. “We’re beyond delighted to welcome Commissioner Andy Lord to the fabulous city of Sydney,” TTF CEO Margy Osmond said. “As a long-standing representative of transport, and now the most senior transport official in London, Andy […]