Double-digit sales growth for AirAsia in Q3

AirAsia said Thursday its Q3 earnings improved substantially, thanks to a record load factor, higher lease income and lower fuel costs. For its Malaysian operations, net profit between July and September recovered to 353m ringgit ($79m) compared with a net loss of 405m ringgit a year ago. Revenue grew 11% on the year to 1.68b ringgit, thanks to stronger demand for travel to regional destinations as a weakening ringgit discouraged long-distance flights to Europe or America, the company said. On a consolidated basis that included contributions from units in Thailand, Indonesia, the Philippines, India and Japan, AirAsia said revenue grew 6% to 2.97b ringgit on profit before taxation of 403m ringgit. In the quarter, the number of passengers carried rose 11% to 14.23m, contributing to sales growth across all units except Indonesia and Japan. In Malaysia, the load factor improved from 82% to 89%, the highest since its establishment in 2001. Average fare also grew 4% to 164 ringgit, while cost per available seat kilometer declined 10% to 0.10 ringgit on lower jet fuel. Units in Thailand, the Philippines and India recorded revenue growth of 12%, 24% and 32% respectively. In Indonesia, revenue declined 26% but AirAsia said it is on track to be in the black in the second half of 2016 on a turnaround plan to cut capacity and network.<br/>