Thursday, 1 November 2012

AirAsia: Revenue expected to hit RM1.24b in third quarter

KUALA LUMPUR: AirAsia Bhd is expected to increase its revenue to RM1.24 billion in the third quarter of this year due to a higher yields estimation of six per cent year-on-year followed by Malaysia Airlines' (MAS) exit from the low-cost carrier (LCC) space.

OSK Research Sdn Bhd said the group's third quarter operating stats were commendable, although its Indonesian affiliate reported flattish numbers as it was operating a smaller fleet with one aircraft less compared to the corresponding period last year.

Meanwhile, the research firm added that AirAsia's Thai unit reported stellar growth due to its aggressive expansion as it added four aircraft to its fleet.

Malaysia AirAsia, Indonesia AirAsia and Thai AirAsia reported revenue passenger KM (RPK) growth of 8.8 per cent, -0.3 per cent and 14.7 per cent year-on-year respectively, on the back of a load factor of 76.7 per cent, 77.6 per cent and 81.7 per cent.

"Malaysia AirAsia's nine-month year-to-date traffic came in marginally better than our forecast at 74 per cent of the full-year RPK, compared with 73 per cent in the year-ago period.

"This is likely the result of its focus on shortening the average stage length," OSK Research said in a research note.

"Average stage lengths for the three carriers were lower by 1.1 per cent, 8.9 per cent and five per cent respectively from last year, suggesting that aircraft utilisation was optimised for shorter routes which were mostly domestic."

"This bodes well for yields and margins from higher ancillary revenue turnover, and ultimately profitability," OSK Research said.

AirAsia Bhd recorded a 12 per cent year-on-year increase in passengers carried for the third quarter ended September while its RPK increased eight per cent.

Malaysia AirAsia posted a strong load factor of 77 per cent in the third quarter, while Indonesia AirAsia posted a high load factor of 78 per cent.

Thai AirAsia posted third quarter load factor of 82 per cent.

Read more: AirAsia: Revenue expected to hit RM1.24b in third quarter

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