AirAsia Q3 Net Profit Plunges

Malaysia based AirAsia’s third-quarter net profit fell 84.8 per cent due mainly to higher financing costs.

Net profit for the quarter ending September 30 was 5.4 million ringgit ($1.61 million), the company said, while revenue increased 3.1 percent to 1.32 billion ringgit.

The company blamed some of the lower profit on affiliate Thai AirAsia posting its second consecutive quarterly loss due to the unsettled political situation in Thailand.

In a filing with the local exchange, AirAsia said TAA recorded an operating loss of 420 million baht (RM43mil) in the third quarter compared to a profit of 377.6 million baht (RM38.68mil) previously.

Cumulative, for the nine-month period of FY14, AirAsia’s net profit jumped 158% to RM512.3mil from RM198.6mil in the same period last year, while revenue rose to RM3.93bil from RM3.84bil previously.

AirAsia said one aircraft was added into Malaysia during the quarter, bringing the total number of aircraft based in Malaysia to 81.On its prospects, AirAsia said the group would not be taking delivery of any A320 aircraft in the fourth quarter.