AirAsia reports sharp fall in Q4 profit

Dino D'Amore
By Dino D'Amore February 27, 2014 12:44

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. “The company needs to continue to be creative in driving margins up,” Fernandes said in a statement. “We have deferred seven aircrafts in 2014 and 12 in 2015 to later years with intention to swap those aircraft with the new fuel efficient A320Neo.”

Dino D'Amore
By Dino D'Amore February 27, 2014 12:44
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="https://www.aviationnews-online.com/wp-login.php?redirect_to=https%3A%2F%2Fwww.aviationnews-online.com%2Fairline%2Fairasia-reports-sharp-fall-in-q4-profit%2F"> registered </a> users can comment.