AirAsia almost triple its fourth quarter net profit

AirAsia Bhd, Southeast Asia’s largest budget carrier, reported a better-than-expected fourth quarter net profit, mainly helped by the increasing demand for budget travel.

For the fourth quarter ended December 31, 2012, the company's net profit almost tripled to RM350.6 million, versus RM130.68 million same quarter a year ago. The fourth quarter earnings

beat the RM301.3 million average of six analysts' estimates compiled by Bloomberg.

During the quarter, the airline's revenue rose over 10 per cent to RM1.41 billion, against RM1.28 billion same period last year.

For the full year period, the company's net profit more than tripled to RM1.87 billion, compared to the RM555 million in 2011. Its full year revenue rose

"The revenue growth was supported by 9 per cent growth in passenger volume while the average fare was 6 per cent higher at RM187 as compared to RM176 achieved in 2011. Ancillary income per passenger year-on-year showed a decrease by 11 per cent in FY12. The seat load factor was maintained at 80 per cent unchanged from the same period last year.

"The profit after tax for the period was RM1.88 billion compared to RM555.3 million in 2011. The profit after tax for the period includes RM120.1 million gain on the disposal of the 4 per cent equity interest and a fair value gain on the remaining 45 per cent equity interest in Thai AirAsia of RM1.04 billion," said AirAsia in its filing to Bursa Malaysia on Tuesday evening.

The low-cost carrier also surprised investors with the announcement of a special dividend of 18 sen amounting to RM500.38 million and also proposed a final tax-exempt dividend of six sen.

AirAsia shares on Bursa Malaysia fell 1.1 per cent to close at RM2.64 yesterday, so far this year, the stock has declined by 3.7 per cent.