AirAsia's 2011 net profit drops 46 %

Asia's largest budget carrier AirAsia Berhad reported a net profit drop of 46.8 percent to 564.1 million ringgit (186.51 million U.S. dollars) last year from 2010 due to unrealized foreign exchange losses, higher fuel prices and deferred taxation, the company said on Thursday. Revenue for the year, however, rose 13 percent to 4.47 billion ringgit (1.47 billion U.S. dollars) while net income in 2011 increased by 18 percent to 749.32 million ringgit (247.74 million U.S. dollars) from 2010. "The decline in profit after tax was primarily due to the unrealized foreign exchange losses on translation... Furthermore, there was a deferred taxation in 2011 due to the balancing charge on capital allowances and investment allowances as a result of the sale of five aircraft to AirAsia Indonesia in compliance with the Indonesian regulations to maintain their AOC (Air Operator Certificate)," AirAsia CEO Tony Fernandes said. He said the company is proud to have achieved higher revenue and net income despite higher fuel prices, which jumped substantially by 36 percent over the year. The company's net profit for the fourth quarter of last year ended in December plunged by 56 percent to 135.7 million ringgit ( 44.86 million U.S. dollars) from 311.1 million ringgit (102.85 million U.S. dollars) previously. Aircraft fuel cost for the quarter was 475.1 million ringgit, 182.7 million ringgit higher than the same quarter in 2010. Deferred taxation was 198.1 million ringgit (65.49 million U.S. dollars) compared with 84.2 million ringgit (27.83 million U.S. dollars) a year before. Revenue for the quarter, on the other hand, grew 9 percent to 1. 3 billion ringgit (429.82 million U.S. dollars) from a year ago as passenger volume rose by 9 percent. Fernandes said AirAsia would continue to be the top among low cost carriers in the region with seven new routes, increased frequencies and the delivery of 20 new A320 Classic this year. The 11-year-old airline company expects its affiliates in Thailand and Indonesia to be listed this year. Its Philippine and Japan affiliates meanwhile would commence flights in the first and second half of the year respectively.