AirAsia profits up 13 percent

AirAsia profits up 13 percent

KUALA LUMPUR: Low-cost carrier AirAsia said on Monday its net profit rose 13 percent to 11.8 million ringgit (US$3 million) in the three months to September compared to the same period a year ago.

Chief executive officer Tony Fernandes said the carrier had moved to hedge its fuel costs and secure a tax break to cope with a "challenging" first quarter of the 2006 financial year.

"The first (quarter) is seasonally the weakest quarter for the year but nonetheless AirAsia managed to achieve an encouraging performance relative to the industry," he said in a statement.

Fernandes said the profit increase, from 10.5 million ringgit a year ago, was built on a 50 percent rise in revenue in the quarter.

AirAsia's joint ventures in Thailand and Indonesia were also doing well, he said, adding that the Thai operations recorded a net profit of 2.0 million baht.

Fernandes said the airline now services 57 routes, making it "the most geographically connected airline in Southeast Asia". -- AFP