Fernandes: Trump is right, quarterly reporting unnecessary

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KUALA LUMPUR (Sept 19): AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes said he agrees with US President Donald Trump's call for companies to issue financial reports just twice a year, rather than four times, as it drives analysts to make short-term decisions.

"One of the few things I agree with Donald Trump is quarterly reporting is null and void. Should be six months. Analysts driving to much short-term decision," he said via Twitter today.

Fernandes hinted that the aviation group is expecting to incur high costs moving forward, as it funds its future growth plans.

"We are building a superb airline franchise. And making it one airline. Lots of cost to come out. And a huge unicorn digital business.

"There are two options as CEO. Cut capacity and damage long-term growth and be more profitable, which make analysts happy; or continue to invest for [the] future and have an amazing 2019 and 2020. Which one [do] you think we will be taking?" he said.

AirAsia's share price has come down 12% since about a month ago. At the time of writing, the stock is trading at RM3.06, up two sen or 0.66% from yesterday.