Fuel costs have impacted AirAsia quarterly profits and the carrier reported its first drop in profit in five quarters. Net income fell 39% to 104.8 million ringgit ($35 million) in the three months ended March 31, while revenue climbed 11% to 1.30 billion ringgit.
Fuel costs rose 18% in the quarter to 523 million ringgit, while aircraft lease expense climbed 11% to 44.7 million ringgit. AirAsia also booked foreign exchange loss of 37.7 million ringgit, compared with a gain of 88 million ringgit a year earlier.
AirAsia carried more passengers during the period however. Passenger numbers rose by 7% to 5.2 million in the period, with average fares increasing by 2%.
Group Chief Executive Officer Tony Fernandes said the carrier has potential for “double digit” growth this year as AirAsia franchise expands.
AirAsia quarterly profit falls
