KUALA LUMPUR (Nov 29): Budget airline AirAsia Group Bhd has posted an 81.2% jump in net profit to RM915.88 million or 27.4 sen a share in the third quarter ended Sept 30, 2018 (3QFY18) — its highest quarterly net profit in six years — from RM505.33 million or 15.1 sen a share last year.

The jump in earnings was due to a one-off gain on the sale of Expedia, as well as the reversal of deferred tax liabilities that arose from the disposals of aircraft, according to the group's quarterly results filing today.

AirAsia said the deferred tax of RM515.4 million arose as the difference between the net book value and tax written down value of property, plant and equipment shrank in the period on completion of the sale and leaseback transactions on the aircraft.

The group declared a special dividend of 40 sen per share for FY18, payable on Dec 28.

Quarterly revenue grew 6.6% to RM2.61 billion from RM2.45 billion, due to a 9% rise in total passengers carried, and as overall unit passenger revenue grew 1% as a result of an increase in average fare. Load factor was at 82% in 3QFY18, versus 87% in 3QFY17, as the increase in passengers carried was lower than the 16% increase in capacity, the group said.

Quarterly operating profit, however, halved to RM253 million in 3QFY18 from RM494 million in 3QFY17, mainly due to higher fuel expenses. "Excluding fuel expenses, costs were fairly well controlled, showing a reduction of 2% of CASK ex-fuel," AirAsia said.

With the latest quarterly results, the group's net profit for the cumulative first nine months of FY18 shot up 90.9% to RM2.42 billion or 72.4 sen per share from RM1.27 billion or 37.9 sen per share last year, while revenue rose 10.3% to RM7.78 billion, from RM7.05 billion.

On prospects, AirAsia said its board is cautious about its results in FY18, as it has been impacted by higher fuel prices.

"However, the drop in fuel price in December is expected to contribute positively to the December month operational results and in the year 2019," it said.

With the operating environment in 4QFY18 seen to have improved compared to 3QFY18, coupled with the year-end holiday season, further efforts to reduce costs and continued growth in its associates, its board is confident FY18 will turn out to be a profitable year.

The airline also said it is on track to achieve its group load factor target of 85% for FY18.

“Our daily aircraft utilisation is already at 13 hours a day. We want to further improve the turnaround time and overall performance by each affiliate. We are focused in turning around Indonesia and Philippines, post Boracay closure and natural disasters, in the fourth quarter and into year 2019,” said AirAsia.

It also updated it is now in the "next phase of development" where it is expanding beyond air transport and digitalising its operations and processes to become more efficient. "Further, we are now embarking on a journey to become a technology travel company in partnership with Google Cloud," it added.

AirAsia shares slid one sen or 0.33% to close at RM2.98 today, giving it a market capitalisation of RM9.96 billion.