AirAsia reports 'strong and healthy demand' in 2Q2016, remains 'lowest cost airline in the world'

AirAsia recorded (29-Aug-2016) "strong revenue" in 2Q2016 on the back of a 10% year-on-year increase in passenger numbers. The average airfare increased 8% to MYR153 (USD37.9) supported by "strong and healthy demand." Ancillary income per passenger increased 5% to MYR48 (USD11.9). Among ancillary products, sales of inflight merchandise increased 400%, the AirAsia Courier product grew 86% and connecting fees for the 'Fly-Thru' transit service increased 65%. AirAsia Group 'Fly-Thru' traffic increased 32%, including a 31% increase at Kuala Lumpur, which accounted for 83% of total transit traffic. CASK decreased 2% mainly due to a 21% decrease in fuel expenses as the average fuel price fell 24%. Fuel consumption increased 4%. Lease expenses increased 77% due to 16 additional sale and leaseback agreements and increased maintenance and user charges costs due to two additional operational aircraft. The carrier said it remains, "the lowest cost airline in the world." Net gearing ratio decreased 11% to 1.64 times from 1Q2016 to 2Q2016 due to a 2% decrease in total debt and higher total equity. AirAsia Group CEO Tony Fernandes said the carrier expects "extremely robust" demand in Malaysia to improve in the coming quarters as consumer sentiment picks up. [more - original PR]