AirAsia shares fall as airline posts £64m loss

AirAsia shares fall as airline posts £64m loss

Image credit: Sorbis / Shutterstock.com

AirAsia, Asia's biggest budget airline, posted a quarterly loss for the three months to September.

A net loss of 405.73 million Malaysian ringgit (£63.4 million) was reported against a profit of 5.4 million ringgit for the same period last year.

Shares in the Malaysian-based airline fell as much as 7% today as a result, the BBC reported. Quarterly earnings were hit by foreign exchange.

AirAsia's share of Indonesia AirAsia's net loss in the period came to 155.7 million ringgit as passenger numbers dropped by 12%.

Indonesia's national transport safety board is next week expected to announce the findings of an investigation into the December 2014 incident when one of its aircraft crashed into the Java Sea off of Indonesia, killing all 162 people on board.

Meanwhile, the group said it was working towards a better fourth quarter.

“In Malaysia, we see strong demands in the fourth quarter of 2015 with an average load factor forecast at 84% and a better fare environment as Malaysia Airlines has begun its capacity rationalisation process” the company said.

“AirAsia is working on increasing capacity in the fourth quarter to meet the strong demand due to the year end holidays and festivities.

“In Thailand, forward loads and average fares for the remaining months of the fourth quarter of 2015 looks optimistic as the business environment has picked up. As with Malaysia, we see strong demands in the fourth quarter of 2015.

“In Indonesia, forward loads and average fares for the remaining months of the fourth quarter of 2015 continue to improve as a result of the brand recovery efforts launched in April.

“In Philippines, revenue/available seat kilometre for the remaining months of the fourth quarter 2015 are forecasted to further improve from the third quarter 2015. Philippines AirAsia remains on track with its turnaround plan with a focus on increasing frequency of the high yielding routes.

“In India, the forward loads remain buoyant. AirAsia India will remain focused on building a footprint in the Indian domestic market with the introduction of new routes and frequency increases.

“However, barring any unforeseen circumstances, the directors remain positive for the prospects of the group for the remainder of the year."

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