Malaysia's no-frills airline AirAsia will extend its flights to Johor by the end of the year, a top official said today.

AirAsia's chief executive officer Tony Fernandes said the company would strengthen its position in the domestic market on the back of its affordable air fares, which are the lowest in Asia.

"We believe that there is a market and demand is growing," he was quoted as saying by the Bernama news agency.

For its financial year to June this year, AirAsia posted sales of RM320 million and net profit of RM30 million.

Internet bookings

AirAsia serves 12 destinations in Malaysia and 45 percent of its bookings are made via an Internet booking facility.

AirAsia has flown two million passengers within 18 months of operation. It currently has seven aircraft.

The airline, which began domestic flights in December 2001, has been described as a "vibrant and profitable low-cost airline" after early criticism that it would fail within three months.

AirAsia expects to offer its first Islamic bond issue later this year to help finance the purchase and lease of 11 Boeing 737-300 aircraft to enable the carrier to expand its destinations. - AFP