AirAsia Bhd has registered a lower pre-tax profit of RM456.407 million for the first nine months of 2011 compared to RM710.735 million during the same period last year.

Revenue for the three quarters, however, rose to RM3.201 billion from RM2.783 billion previously.

In a statement today, the airline said its pre-tax profit for the third quarter ended Sept 30, 2011, dwindled to RM108.496 million compared to RM310.342 million in the corresponding quarter last year.

Revenue for the three-month period grew to RM1.076 billion from RM979.710 million.

Commenting on the results, AirAsia chief executive officer Tony Fernandes said monetising its ancillary investment, which has always been one of AirAsia’s key strategies to allow the company to focus on its core competencies, had been fruitful.

“The Asian Aviation Centre of Excellence (our JV with CAE) recorded a net profit of RM6.2 million and AAE Travel (our JV with Expedia) recorded a net profit of RM14 million in their first quarter,” he said, adding that both the joint-ventures were launched in July 2011.

On the associates, AirAsia Thailand posted a revenue of THB3.719 billion, a growth of 33 percent year-on-year.

The operating profit was reported at THB195 million, down 48 percent caused by a 70 percent year-on-year increase in fuel expenses.

As for AirAsia Indonesia, it posted a 37 percent rise in revenue of IDR1.07 billion, supported by a 30 percent increase in number of passengers carried, reflecting a strong demand environment.

Operating expense increased by 73 percent mostly due to increase in fuel expense which approximately doubled due to 41 percent increase in average fuel prices and 42 percent increase in fuel consumed.

“AirAsia Indonesia also booked a provision for early return of the remaining three B737s amounting to IDR53 billion,” Fernandes said.

‘Forward booking remains very strong’

On the outlook for the rest of 2011, he said AirAsia would have a good fourth quarter.

“Our forward booking in the final quarter remains very strong for Malaysia, Thailand and Indonesia.

“The floods in Thailand are expected to have a minimal impact to the group’s financials and operations. Although the Bangkok area was severely affected, we have seen that the domestic sector's performance has been resilient and are still performing well, in terms of yields and loads,” he said.

Fernandes added there was expected to be a short term impact on international sectors to/from Thailand in the fourth quarter of 2011, though December performance, the peak month for tourist arrivals, was still expected to be strong.

Moving ahead beyond 2011, Fernandes said that AirAsia would remain focused in its strategy.

“Come Dec 8, we will be celebrating the first decade of AirAsia as a low-cost carrier. Our next decade will be aimed at sustaining our momentum, at further strengthening connectivity within Asean and beyond, and at delivering our brand promise of low fares and high-quality service.

“It will also be a decade when we will reap the full benefits from all of our joint-ventures,” he said.

- Bernama