AirAsia reports sharp fall in Q4 profit

AirAsia has posted a 19% drop in fourth-quarter profit to 245 million ringgit although revenue remains flat at 1.35 billion ringgit. Operating profit for the fourth quarter declined 2% to 315 million ringgit due to higher aircraft maintenance costs and lower fares. Much of the fall is due to currency fluctuations but the airline has also been struggling with stiff competition. For the full year, profits were down 55% to 364 million ringgit compared to a year earlier. Boss Tony Fernandes has stated that the airline will use creative means to slash costs, including selling older aircraft and reducing staff.