Budget carrier AirAsia today said its net profits fell by almost 35 percent in the first quarter to September to RM5.65 million on lower average fares.

Revenue for the period rose 28.6 percent to RM239.57 million, it said.

"The first quarter is seasonally the weakest quarter for the year," the budget airline said in a statement.

AirAsia said the Muslim fasting month fell in the first quarter, during which the airline had offered promotional fares.

"Lower average fare (was needed) in order to maintain strong passenger growth momentum and to protect load factor," it said.

During the quarter, the passenger load factor dipped slightly to 79 percent compared to 83 percent in the preceeding quarter, it said.

High cost of jet fuel

AirAsia was positive on its outlook and said revenue was expected to rise on the back of additional capacity over the next nine months.

A restructuring of domestic routes is proceeding smoothly, it said, adding that this should help increase the group's market share.

AirAsia said however that the high cost of jet fuel remained a concern.

The low-cost carrier posted a 14 percent increase in annual profits in August, saying it had beaten high oil prices and intense competition, thanks to increases in fares and passenger loads.