AirAsia reports revenue of RM3.1 billion for 3Q2019

- A Monitor Report01 Dec, 2019 | 349 Views|-+
Kuala Lumpur : AirAsia Group Berhad witnessed a revenue of RM3.1 billion for the quarter ended on September 30, 2019, up 18 per cent from RM2.6 billion in 3Q2018 despite a reduction in lease income, announced the carrier.

The double-digit growth in revenue was driven by a 20 per cent year-on-year (YoY) increase in passengers carried to 13 million. Ancillary revenue also grew by 26 per cent YoY to RM686 million, with traditional airline ancillary revenue up 16 per cent while non-airline ancillary revenue up 72 per cent.

Net operating profit was RM2 million, down from RM69 million. The weaker YoY performance was due to the accounting impact from the restructured aircraft ownership, from owning to leasing aircraft, even though similar cash outflow in either financing method. MFRS137 drove maintenance and overhaul cost up 118 per cent YoY while MFRS16 adoption resulted in depreciation of right of use asset and finance costs (lease liabilities).

Net loss for the period was RM67 million, compared to a net profit of RM804 million in the previous corresponding quarter. This was mainly due to a RM238 million fair value loss on derivatives and a RM112 million foreign exchange loss. In 3Q last year, the company also reported a RM171 million gain on disposal of an associate.

Positive operating cash flow (post operating lease) was generated in the first nine months of the year, amounting to RM856 million.

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