Malaysia's AirAsia Group Bhd reported a record net profit in the first quarter mainly helped by the disposal of a ground handling services unit, reports Reuters.
Net profit for the three months to March 31 jumped 85 per cent to 1.14 billion ringgit ($286.50 million) on revenue up 14.8 per cent to 2.56 billion, the budget airline said in a bourse statement on Thursday.
It saw a gain of 534.7 million ringgit ($134.4 million) from the disposal of its interest in Ground Team Red Holdings Sdn Bhd which was completed in January.
"The gain however was partially offset by current and deferred taxation charges of 104 million ringgit in the current quarter," the airline said.
Rising oil prices meant higher costs but that was offset by strength in the ringgit which gained 4.5 per cent in that period.
AirAsia reported an unchanged unit cost for the quarter despite a 9.0 per cent rise in average fuel price to $83 per barrel.
To mitigate cost pressures, the group said it is driving more ancillary sales and ensuring better performance by all associate airlines.
Its passenger volume rose by 16 per cent but lagged a 19 per cent increase in capacity, knocking its load factor by 2.0 percentage points to 87 per cent, in line with expectations for the season.
AirAsia also projected an average load factor of 87 per cent for the second quarter.
"In order to better serve the growing demand in the region, the group is also planning for a net increase of additional three aircraft through operating leases in the second quarter," the airline said.
Group CEO Tony Fernandes, who built AirAsia up from a two-plane operation in 2002, is now targeting rapid expansion in its core Southeast Asian markets.
The group has also segregated its businesses into airline transportation and digital divisions to provide better clarity and business focus in each division.
Last week, Fernandes accused industry regulator, the Malaysian Aviation Commission of pressuring the airline to cancel flights meant to transport voters home for a recent general election that saw the defeat of Malaysia's long-ruling coalition.
