KUALA LUMPUR: AirAsia, the region’s biggest budget carrier by fleet size, said Thursday it suffered a loss in the third quarter, bogged down by foreign exchange losses and its Indonesian operations.
AirAsia registered a net loss of RM405.72 million (US$95.9 million) in the quarter ending September 30.
The company had registered a profit of RM5.4 million in the corresponding period of 2014.
Revenue increased by 15 percent to RM1.52 billion due to an increase in passenger numbers, fuelled in particular by increased demand from Chinese travelers, AirAsia said.
The discount carrier, in a statement, added that foreign exchange losses were RM435.98 million, up from RM152.66 million a year ago.
AirAsia’s boss Tan Sri Tony Fernandes, a former record industry executive, remained optimistic for the rest of the year, insisting that in Malaysia, all signs were “pointing towards rational and sustainable growth in the coming quarters.”
The company’s Indonesian operations, Indonesia AirAsia, (IAA) took a hit with a drop in passengers and revenue fell by 14 percent to 1,483.7 billion rupiah.
“IAA’s turnaround plan was solid but was affected by new regulations,” Fernandes said.
“Demand during the quarter was affected due to the negative equity regulation introduced which was widely covered by both local and international media. This created uncertainty and prompted travel agents to divert bookings away from IAA.”
Meanwhile, the company’s long haul arm AirAsia X posted on Wednesday a third quarter net loss of RM288.19 million.
During the same period last year it suffered a net loss of RM210.85 million.--AFP