KUALA LUMPUR: Kenanga Research is confident that AirAsia Bhd will post earnings of RM517 million for the 2014 financial year, after reviewing its preliminary operating statistics.
AirAsia recorded a 7.0 per cent growth in passenger traffic year-on-year for the 2014 financial year, bringing the total number flown to 45.6 million and a load factor of 78 per cent.
The research house said the low-cost airline would greatly benefit from weak crude oil prices as it would mean a cheaper jet fuel price, given that fuel costs made up about 50 per cent of AirAsia’s total operating costs.
In a note, Kenanga Research said the airline’s financial results was set to be released on Feb 26.
“We are also expecting overall yields and passenger traffic to pick up due to the removal of fuel surcharges, coupled with managements’ target to achieve ancillary income target of RM50 per pax,” it said.
Kenanga Research also expects AirAsia to undertake more divestments in the 2015 financial year.
Yesterday, the airline announced the divestment of its 25 per cent stake in AAE Travel Pte Ltd to Expedia Inc for RM306.187 million.
The research house maintained its “outperform” call on AirAsia with an unchanged target price of RM3.27.
– BERNAMA