Surging depreciation and costs hit AirAsia's Q1 profit
AirAsia has reported a Q1 operating profit down 68% at MYR236m (US$56.3m), after a sharp increase in total expenditure. Revenue in the 3 months ended March 31 was up 13% at MYR2.88b, but expenses jumped 21% to MYR2.78b. Depreciation was the highest contributor to the higher expenses, followed by maintenance and fuel costs. Unit cost rose 8% if fuel is included, or 11% ex-fuel. Net profit plunged 91% to MYR102mi, despite foreign-exchange gains and a fair-value gain on derivatives. Last year's figure had included remeasurement gains on retained interest in a former subsidiary. Passenger numbers rose 18% to 12.5m in Q1. Traffic growth of 13% outpaced an 11% capacity boost. Load factor rose one point to 88%. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-05-30/unaligned/surging-depreciation-and-costs-hit-airasias-q1-profit
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Surging depreciation and costs hit AirAsia's Q1 profit
AirAsia has reported a Q1 operating profit down 68% at MYR236m (US$56.3m), after a sharp increase in total expenditure. Revenue in the 3 months ended March 31 was up 13% at MYR2.88b, but expenses jumped 21% to MYR2.78b. Depreciation was the highest contributor to the higher expenses, followed by maintenance and fuel costs. Unit cost rose 8% if fuel is included, or 11% ex-fuel. Net profit plunged 91% to MYR102mi, despite foreign-exchange gains and a fair-value gain on derivatives. Last year's figure had included remeasurement gains on retained interest in a former subsidiary. Passenger numbers rose 18% to 12.5m in Q1. Traffic growth of 13% outpaced an 11% capacity boost. Load factor rose one point to 88%. <br/>
