Budget carrier AirAsia said its third quarter to March net profit fell 8.1 percent from the previous three month period amid higher fuel prices and dampening air travel sentiment.

The carrier said profit after tax reached RM40.7 million compared to a second quarter net profit of RM44.3 million.

"In recent months, the airline industry has been through a period of unforeseen turbulence - a tsunami ... this has been followed by earthquakes in Indonesia and civil unrest in southern Thailand.

"These factors hardly support the desire to travel but the growth in demand remains testimony to the strength of our low fares model," AirAsia chief executive Tony Fernandes said in a statement.

"While these negative influences had some impact on the performance, AirAsia managed to achieve strong load factors on improving yields," he said.

AirAsia, which listed in November said the outlook for the fourth quarter remained bright on the back of seasonal factors.

But it said it might miss the initial public offering net profit forecast of RM159.88 million for the year to June 2005.