AirAsia Group's profits slashed, but “untold fortunes await” with contrarian strategy
AirAsia’s second quarter profit result contained few surprises. Net profit fell 95% and operating margins slipped below 5%. CEO, Tony Fernandes, stated it was nonetheless a “commendable performance” given that unit fuel price increased by 65% to USD142.5 per barrel. AirAsia is maintaining its contrarian approach of continuing to grow strongly as its competitors cut back. [1363 words]
Unlock the following content in this report:
- Rapid expansion taking toll on short term performance
- Keeping a handle on costs: still has the lowest costs in the world
- Cross border JVs on path to profitability, but still in the red
- AirAsia X: "Dark horse that adds value"
- Outlook: Remains confident in outlook in the face of widespread economic slowdown
Graphs and data:
- AirAsia financial highlights for three months ended 30-Jun-08
- AirAsia passenger numbers (mill) and passenger load factor (%): 1Q07 to 2Q08
- AirAsia sectors flown vs Average fares (MYR): 1Q07 to 2Q08
- AirAsia: Unit cost per ASK (USD cents): 2Q07 vs 2Q08
- Sample LCC unit cost (per ASK; USD cents)
- AirAsia cost per ASK (sen): Non-fuel vs including fuel: 1Q07 to 2Q08
- AirAsia fleet composition: Aug-08
- Thai AirAsia financial highlights for three months ended 30-Jun-08
- Indonesia AirAsia financial highlights for three months ended 30-Jun-08
Please login to continue reading or find out more about CAPA Membership below.
This content is exclusively for CAPA Membership Subscribers
CAPA Membership gives you the latest aviation news and alerts, access to CAPA articles, reports, and our leading aviation data with optional premium add-ons.