Friday 29 Mar 2024
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KUALA LUMPUR (March 2): AirAsia Bhd emphasised the importance of slashing costs on top of the pursuit of growth, according to its group chief executive officer, Tan Sri Tony Fernandes.

He said in his social media account there will be higher utilisation of its fleet, new aircraft, more seats and focus on data and technology.

"On top of growth we are pushing down cost especially with our peers. Higher utilisation. New aircraft. More seats. Data and technology," he posted via his official twitter account.

"Growth growth growth. That's what we are focusing on in the AirAsia group. And it will be profitable growth as investment done," he said.

In its latest financial results, AirAsia's passenger seat sales increased in the fourth quarter ended Dec 31, 2016 (4QFY16), supported by a 5% growth in passenger volume, while average fare was up 5% at RM186 from RM177 in 4QFY15.

However, the group's net profit fell by 16% to RM465.32 million or 16.7 sen per share in 4QFY16 from RM554.11 million or 19.9 sen per share a year ago, due to a 48% decline in aircraft operating lease income.

Quarterly revenue also fell 10.7% to RM1.94 billion from RM2.17 billion in 4QFY15.

The latest comment by Fernandes is in line with the group's projection of achieving an average forecast load factor of 89% in the first quarter of 2017 while being confident of strong demand across most sectors for the rest of the year, coupled with a favourable fuel price environment despite continuous fare competition in the market.

AirAsia's share price rebounded from recent low of RM2.16 in September last year to RM2.83 today, up 31% since then.

 

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