Budget carrier AirAsia said Monday its net profit had risen 10 percent in the first quarter of 2010 due to a strong increase in passenger numbers as demand improved region-wide.

Asia's largest low-cost carrier by fleet size said its net profit for the three months to March 31 had risen to RM224.1 million (67.9 million dollars) compared to RM 203.2 million a year earlier.

"We are optimistic for the rest of the year," AirAsia Goup chief executive Tony Fernandes said in a telephone conference.

"We are looking up good for the second quarter and very strong for third quarter."

Revenue for the quarter ended March 31 was up 10 percent year-on-year at RM878 million. First quarter passenger numbers rose 17.1 percent to 3.69 million, from 3.15 million a year earlier.

AirAsia's capacity increased 11.1 percent over the same period, resulting in its passenger load factor rising to 74 percent from 70 percent in the first quarter of 2009.

The firm's Thai and Indonesian operations had registered "sustained turnaround," Fernandes said.

The airline's fleet size as of March 31 was 48 aircraft compared with 44 a year earlier.

- AFP