AirAsia boosts third-quarter profit 5% amid strong revenue rise

Indonesia AirAsia‘s third-quarter EBITDA was narrowly positive at Rp415 million ($29,000); revenue swelled 72% to Rp1.83 trillion. Net profit came in at Rp61.2 billion, reversing a Rp214 billion net loss in the same period last year.

Philippines AirAsia‘s EBITDA came in at nearly Ps1 billion ($19.7 million), reversing a Ps1.32 billion loss in the same quarter of 2018. Revenue jumped 40% to Ps6.23 billion, and the operation’s net loss narrowed to Ps367 million.

AirAsia India narrowed its EBITDA loss to Rs1.2 billion ($16.8 million), as revenue climbed 58% to Rs7.24 billion. Loss after tax was flat at Rs3.1 billion. AirAsia says the unit’s costs grew in line with capacity increases.

Meanwhile, AirAsia Japan made a net loss of Y3.71 billion ($33.9 million).

As of 30 September, the AirAsia Group had MYR2.18 billion in cash and cash equivalents – some MYR4.43 billion less than it had on the same date last year.

AirAsia Group says newly delivered Airbus A321neos will be deployed on routes with high demand and constrained infrastructure, in an effort to reduce unit cost.

In 2020, the group will make a net addition of 12 aircraft to its fleet. Malaysia AirAsia will not take any aircraft, while Thai AirAsia will remove three jets. Indonesia AirAsia and AirAsia Japan will each receive three jets, and Philippines AirAsia two. The bulk of the growth will be at AirAsia India, which will add seven aircraft.

The airline group foresees a “positive… core performance” during the fourth quarter. It says: “As the group repositions the business to adapt to the evolving business environment along with new accounting treatment and restructured aircraft ownership, we look forward to a better year in 2020.”