AirAsia, the region's first and biggest budget carrier, said earnings rose sharply as the company benefitted from a strong pickup in demand, for which it and a growing number of other low-cost airlines are responsible.

It said its three months to December net profit rose to RM44.36 million from RM10.5 million in the three months to September as sales rose 55 percent to RM178.6 million .

Sales for the six months to December totalled RM302.83 million with net profit at RM54.84 million.

Corresponding figures from a year earlier were not provided since AirAsia only became a listed company in November.

Last December, AirAsia announced it would buy 40 Airbus aircraft and exercise an option to buy another 40 A320 jets, adding that it would launch flights to China by March to maintain its position as Asia's leading budget airline.

AirAsia shares were down RM0.05 at RM1.73 in the morning session, with some investors concerned about pressure on yields.