KUALA LUMPUR: AirAsia is expected to record a higher revenue of RM1.24 billion in its third quarter due to a higher yields estimation of six per cent year-on-year and following Malaysia Airlines (MAS) exit from the low cost carrier space.
OSK Research Sdn Bhd said the third quarter stats for AirAsia were commendable, although its Indonesian side reported flattish numbers, as it was operating a smaller fleet with one aircraft less compared to the corresponding period of last year.
"AirAsia's nine-month year-to-date traffic for Malaysia came in marginally better than our forecast at 74 per cent of the full-year Revenue Passenger KM (RPK), compared with 73 per cent in the last year's period.
"This is likely the result of its focus on shortening the average stage length," it said in a research note today.
For the AirAsia business in Indonesia and Thailand, the research firm said the numbers are also in line with its forecast.
"Average stage lengths for the three carriers were lower by 1.1, 8.9 and 5.0 per cent, respectively from last year, suggesting that aircraft utilisation was optimised for shorter routes which are mostly domestic.
"This bodes well for yields and margins, from higher ancillary revenue turnover, and ultimately profitability," it added.
OSK Research has maintained its "buy" call on AirAsia with an unchanged fair value of RM3.91. -- BERNAMA
Read more: AirAsia to record higher revenue in Q3http://www.btimes.com.my/articles/20121031125701/Article/#ixzz2AsVVnO9C
OSK Research Sdn Bhd said the third quarter stats for AirAsia were commendable, although its Indonesian side reported flattish numbers, as it was operating a smaller fleet with one aircraft less compared to the corresponding period of last year.
"AirAsia's nine-month year-to-date traffic for Malaysia came in marginally better than our forecast at 74 per cent of the full-year Revenue Passenger KM (RPK), compared with 73 per cent in the last year's period.
"This is likely the result of its focus on shortening the average stage length," it said in a research note today.
For the AirAsia business in Indonesia and Thailand, the research firm said the numbers are also in line with its forecast.
"Average stage lengths for the three carriers were lower by 1.1, 8.9 and 5.0 per cent, respectively from last year, suggesting that aircraft utilisation was optimised for shorter routes which are mostly domestic.
"This bodes well for yields and margins, from higher ancillary revenue turnover, and ultimately profitability," it added.
OSK Research has maintained its "buy" call on AirAsia with an unchanged fair value of RM3.91. -- BERNAMA
Read more: AirAsia to record higher revenue in Q3http://www.btimes.com.my/articles/20121031125701/Article/#ixzz2AsVVnO9C
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