AirAsia swings to Q3 loss, dragged by Indonesia and forex losses

Malaysia-based AirAsia, the region’s biggest budget carrier by fleet size, said on Thursday (Nov 26) it suffered a loss in the third quarter, bogged down by foreign exchange losses and its Indonesian operations.

AirAsia registered a net loss of RM405.72 million (US$95.9 million) in the quarter ending Sep 30. The company had registered a profit of RM5.4 million in the corresponding period of 2014.

Revenue increased by 15 per cent to RM1.52 billion due to an increase in passenger numbers, fuelled in particular by increased demand from Chinese travellers, AirAsia said. The discount carrier, in a statement, added that foreign exchange losses were RM435.98 million, up from RM152.66 million a year ago.

AirAsia’s flamboyant boss Tony Fernandes, a former record industry executive, remained optimistic for the rest of the year, insisting that in Malaysia, all signs were “pointing towards rational and sustainable growth in the coming quarters.”

The company’s Indonesian operations, Indonesia AirAsia, (IAA) took a hit with a drop in passengers and revenue fell by 14 per cent to 1,483.7 billion rupiah.

“IAA’s turnaround plan was solid but was affected by new regulations,” Fernandes said. “Demand during the quarter was affected due to the negative equity regulation introduced which was widely covered by both local and international media. This created uncertainty and prompted travel agents to divert bookings away from IAA.”

Meanwhile, the company’s long haul arm AirAsia X posted on Wednesday a third quarter net loss of RM288.19 million. During the same period last year it suffered a net loss of RM210.85 million.