AirAsia Berhad profit before tax up 40% in 2017

AirAsia Berhad posted fourth quarter 2017 revenue of RM2.66 billion, up 10% year-on-year from RM2.41 billion in the same quarter in 2016.

Revenue growth was supported by very strong load factor of 88%, which was one percentage point higher and 17% increase in passengers carried to 10.44 million as compared to the same quarter last year.

Net operating profit up by 14% to RM549.8 million despite higher staff, fuel and overall aircraft maintenance & overhaul expenses.

Operating cash flow stood at RM1.31 billion as compared to RM605.2 million for the third quarter 2017. The heathier cash position brings our net gearing ratio down to 1.16 times as compared to 1.33 times in 2016.

For the full financial year ended 31 December 2017, the Group posted revenue of RM9.71 billion and net operating profit, after accounting for finance costs of RM1.59 billion, up by 8% from FY2016.

“Our rapid expansion helped AirAsia Berhad achieve revenue growth of 10% year-on-year in the fourth quarter across our Malaysia, Indonesia and Philippine units," says AirAsia Berhad Group CEO Tony Fernandes.

He adds "we now dominate 55% of the domestic market in Malaysia up from 47% in the same time last year."

Full Year 2017 AirAsia Berhad results

• Revenue grew 14% YoY to RM9.71 billion
• Passengers carried up 11% to 39.10 million
• Ancillary Revenue up 16% to RM1.93 billion
• CASK up 4% to 13.16 sen (3.07 US cents)
• Net Operating Profit up 8% at RM1.59 billion
• Profit before tax up 40% to RM2.09 billion
• Cash flow from operations RM2.83 billion
• Net Gearing improved to 1.16x from 1.33x