Low-cost carrier AirAsia said its net profit rose 13 percent to RM11.8 million (US$3.0 million) in the three months to September compared to the same period a year ago.

Chief executive officer Tony Fernandes said the carrier had moved to hedge its fuel costs and secure a tax break to cope with a "challenging" first quarter of the 2006 financial year.

"The first (quarter) is seasonally the weakest quarter for the year but nonetheless AirAsia managed to achieve an encouraging performance relative to the industry," he said in a statement.

Fernandes said the profit increase, from RM10.5 million a year ago, was built on a 50 percent rise in revenue in the quarter.

"AirAsia is one of only a handful of Asia Pacific airlines to achieve double digit growth at both the revenue and net profit level. We achieved this on a 21 percent year-on-year increase in passenger numbers and 18 percent growth in average fares," he said.

AirAsia's joint ventures in Thailand and Indonesia were also doing well, he said, adding that the Thai operations recorded a net profit of 2.0 million baht.

Strong load factors

"We are confident Thai operations will contribute positively for the financial year, as suggested by strong load factors and consistently improving average fares," he said.

Fernandes said the airline now services 57 routes, making it "the most geographically connected airline in Southeast Asia".

The first of up to 100 new Airbus A320 mid-size aircraft, which will be delivered from next month, will boost its ambitions to become the largest low-cost carrier in Asia, he said.

"The A320s will mark a new chapter for us as our operations will have one of the most modern and sophisticated aircraft in our service, as well as one of the youngest airline fleets in Asia."