Fourth Quarter & Full Year 2011 Results
Core Net Income Increased 18% YoY for FYE2011
FYE2011 by the Numbers:
-
Revenue:
- Malaysia : RM4.47 Billion (up 13% YoY)
- Thailand : THB15.87 Billion (up 33% YoY)
- Indonesia : IDR3,705 Billion (up 34% YoY)
-
Operating Profit:
- Malaysia : RM1,199 Million (up 12% YoY)
- Thailand : THB1,943 Million (up 5% YoY)
- Indonesia : IDR149,654 Million (down 53% YoY)
-
Core Net Income
- Malaysia : RM880.78 Million (up 18% YoY)
- Thailand : THB1,908.69 Milion (up14% YoY)
- Indonesia : IDR94,905 Million (down 61% YoY)
-
Deposits, Bank and Cash Balances:
- Malaysia : RM2,020 Million (up 34% YoY)
- Thailand : THB1,211 Million (up 105% YoY)
- Indonesia : IDR32,191 Million (down 20% YoY)
-
Ancillary Income per Pax:
- Malaysia : RM45 (up 2% YoY)
- Thailand : THB383 (up 29% YoY)
- Indonesia : IDR136,650 (up 11% YoY)
-
Passengers:
- Malaysia : 18.0 Million (up 12% YoY)
- Thailand : 6.9 Million (up 20% YoY)
- Indonesia : 5.0 Million (up 28% YoY)
- Net Gearing Ratio : 1.43x (reduced from 1.74x YoY)
LOW COST TERMINAL SEPANG, 22 February, 2012 – AirAsia Berhad (“AirAsia” or the “Company”) today reported its fourth quarter and full year results for the financial year ended (“FYE”) 31 December 2011.
The
Company posted a record revenue of RM4.47 billion, up 13% from a
revenue of RM3.95 billion reported in 2010. Operating profit was
reported
at RM1.20 billion, up 12% from an operating profit of RM1.07 billion
reported in the previous year. Core net income for the same period was
RM880.78 million, up 18% from a core net income of RM749.32 million in
2010.
Group
CEO, Tan Sri Dr Tony Fernandes said “We are proud to achieve an
increase of 12% in operating profit and increase of 18% in core net
income for FYE 31 December 2011. This is remarkable in an environment
where macroeconomic factors such as fuel prices have impacted us and
every other airline. Average fuel prices have substantially increased
36% over the year. Even though fuel costs make
up 50% of our total cost, our resilient business model, focus on cost
control, and an efficient operation has enabled us to sustain high
EBITDAR and EBIT margins”.
AirAsia
reported an EBITDAR margin of 41% and EBIT margin of 27% for FYE 31
December 2011. Cost, measured by cost per available seat per
kilometer (“CASK”) was reported at 12.56 sen, a slight increase of 6%
YoY. However, CASK, ex-fuel, stood at 5.99 sen, a remarkable reduction
of 13% YoY.
He
added, "The decline in profit after tax was primarily due to the
unrealised foreign exchange losses on translation, which is required
for reporting purposes under the accounting standards. Our full year
results indicated that we were on the right path – that is, we managed
matters that were within our control. 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 5 aircraft to AirAsia Indonesia in compliance with the Indonesian
regulations to maintain their AOC”.
Fernandes
further highlighted, “Non-operating items such as deferred taxation,
foreign exchange gains/losses and fair value gains/losses
on derivative financial products are included to derive the profit
after tax due to FRS139. These are only accounting entries and should
not be included when evaluating the performance of the Company.
Profitability for a company like AirAsia, that has USD-denominated
borrowings but has financial statements in Ringgit, should be measured
at the core net income level which has shown an increase of 18% YoY”.
“2011
was a momentous year for AirAsia. We celebrated our 10th year of
delivering our brand promise of low fares, living up to our pledge
of “Now Everyone Can Fly” to more than 135 million passengers across
the region. We flew into new destinations expanding our route network
and increased frequencies on high demand routes, reaffirming our leading
market share. We achieved our target load factor
of 80% underpinning the strong demand for air travel. Results so far
are beyond our expectations and thus, we rewarded our loyal shareholders
with a maiden dividend payout of 3 cents per ordinary share last year.
AirAsia also placed a historic firm order of
200 A320 NEOs with Airbus in line with the huge potential growth, the
biggest order in the region”, said Fernandes.
He
further added, “Our gearing at the end of the year was 1.43 times with a
healthy cash balance of RM2.02 billion. This is a sign of operational
health and it also provides ammunition in times of financial need. We
have done well managing our capital spending and fleet expansion last
year, evidenced by our positive free cash flow”.
On
ancillary income, Fernandes said: “Ancillary is up in all three of our
operations for FYE 31 December 2011: MAA at RM45 per pax (up 2%
YoY); AirAsia Thailand at THB383 per pax (up 29% YoY); and AirAsia
Indonesia at IDR136,650 per pax (up 11% YoY). Although the increase in
MAA’s ancillary income per pax is minimal due to the reclassification of
AirAsiaGo as a share of profits from associates,
ancillary income will continue to be the driving force for AirAsia to
grow further as we roll out more exciting initiatives this year”.
Fernandes
also said “Last year we expanded our adjacency businesses and ventured
into businesses with established partners which allowed
us to keep our focus on our core business. We are pleased to recognise
profits from Asian Aviation Centre of Excellence (“AirAsia-CAE”) and
also AAE Travel (“AirAsia-Expedia”) in their first six months of
operations”.
On the associates, AirAsia Thailand
posted revenue of THB15.87
billion, recording a growth of 33% YoY attributed to higher passenger
volume, a higher contribution from ancillary income and improving yields
for FYE 31 December 2011. Operating profit was reported at THB1.94
billion, up 5% YoY albeit a 61% YoY increase in
fuel expenses. For the same period, AirAsia Thailand increased its
profit after tax to THB2.03 billion from THB2.01 billion reported in
2010.
As
for AirAsia Indonesia, it posted a 34% rise in revenue of IDR3,705.30
billion, supported by a 28% increase in number of passengers carried,
reflecting a strong demand environment for FYE 31 December 2011.
Operating profit decreased to IDR149.65 billion for the same period due
to the hike in fuel prices and also the provision for early return of
aircraft. In the fourth quarter of 2011, the migration
to a fully A320 fleet and also its recent move to Terminal 3, amongst
others, have helped lower its CASK (ex-fuel) by 19%.
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