21-Aug-2014 9:49 AM
Indonesia AirAsia's costs driven higher by weakening rupiah in 2Q2014
Indonesia AirAsia attributed (20-Aug-2014) reduced operating profit in 2Q2014 to the weakening of the rupiah against the US dollar, increasing fuel, maintenance and leasing costs and driving CASK up 33% year-on-year. The carrier is undertaking a route rationalisation programme to terminate loss-making routes, reduce operational costs and optimise profitability. The airline will maintain its fleet size in 3Q2014, reducing the rate of capacity growth. Forward loads and average fares in Indonesia are higher year-on-year for 3Q2014. [more - original PR]