KUALA LUMPUR (Aug 29): AirAsia Bhd posted a 46.49% revenue growth to RM2.38 billion in the second quarter ended June 30, 2017 (2QFY17) from RM1.62 billion.

However, the low-cost carrier's net profit came in nearly 73% lower at RM92.45 million, from RM342.12 million in the previous corresponding quarter, mainly due to deferred tax liabilities recorded in the quarter, according to a filing to Bursa Malaysia this afternoon.

Its financial statements revealed that there were deferred tax liabilities amounting to RM318.06 million in 2QFY17, compared with deferred tax asset of RM91.15 million booked a year ago.

There was also a mark-to-market loss on derivatives of RM69.16 million taken up in the quarter under review, against a RM110.21 million gain in 2QFY16.

Excluding the tax liabilities, AirAsia's pre-tax profit stood at RM386.81 million in 2QFY17, 34.4% higher than the RM253.81 million achieved in the previous corresponding period.

For the cumulative six months ended June 30, 2017 (1HFY17), AirAsia's revenue grew 42.5% to RM4.6 billion from RM3.23 billion; however, its net profit was lower at RM762.4 million compared to RM1.22 billion a year ago.

Pre-tax profit for 1HFY17 stood at RM1.03 billion, 23.7% lower than RM1.35 billion in 1HFY16.

For the quarter under review, AirAsia in its filing to Bursa today said that the growth in its total net operating profit was on the back of reduced maintenance and overhaul expenses.

During the quarter, total passengers carried also increased 10%, and a strong seat load factor of 89% was recorded, compared to 87% in 2QFY16.

Average fare was up 11% from RM160 in 2QFY16 to RM177 in 2QFY17, whilst the overall revenue per available seat kilometres (RASK) of the group also improved 11%, from 13.89 sen in 2QFY16 to 15.35 sen in 2QFY17.

The group also delivered an additional 762,963 seat capacity in the quarter under review, as compared with the corresponding period last year, which represent an additional 8% growth. This was achieved with the background of a 3% reduction in total fleet size, from 109 aircraft previously to 106 aircraft in 2QFY17.

The group's cost per available seat kilometre (CASK) increased 5% to 13.22 sen in 2Q17, while CASK ex-fuel decreased by 2% from 8.39 sen in 2Q16 to 8.21 sen in 2Q17.

On prospects, AirAsia said that having participated in the Indonesia Tax Amnesty Program, its Indonesian unit, Indonesia AirAsia (IAA), will no longer be liable for any tax liability prior to year 2016, whilst the existing deferred tax asset in IAA's books prior to year 2016 will also no longer be deductible against future profits.

Barring any unforeseen circumstances, AirAsia said the group is optimistic of achieving better results this year than FY16.

Based on the existing forward booking trend, AirAsia said it is projecting to achieve an average load factor of 88% in the quarter to follow.

"The group is also planning to increase an additional 22 planes through a combination of finance and operating leases in the second half of 2017.

"This will be one of the fastest pace of expansion in the last few years, made possible due to the favourable competitive and operating environment of aviation in Asia," AirAsia said in the filing, noting that there should be strong demand with a stable fuel price and foreign exchange environment for the remaining quarters.