KUALA LUMPUR: AirAsia Group Bhd posted net profit of RM96.09mil in the first quarter ended March 31, 2019 but surprised shareholders with a special dividend of 90 sen a share.The low -cost carrier said on Wednesday its net profit was lower than the RM1.14bil a year ago which included a gain on a partial disposal of a subsidiary of RM350.3mil and a remeasurement gain on the retained interest in a former subsidiary of RM534.7mil.“The group revenue for the current quarter recorded a net profit before tax (NPBT) of RM214.3mil which includes a RM92mil foreign exchange gain,” it said. It was also mpacted by an additional charge of RM38.2 million on the adoption of MFRS 16.AirAsia Group said total group revenue grew 9% to RM2.78bil from RM2.55bil a year ago due to an 18% increase in total passengers carried and increase in load dactor from 87% to 88%.However, overall unit passenger revenue fell by by 3% from RM218 to RM212.It said in line with the growth in revenue, 1Q19's earnings before interest, tax, depreciation and amortisation (Ebitda) rose by 6% to RM678.4mil from RM642.9mil.“The growth in revenue was offset by the increase of staff costs and user charges and related expenses in line with the increase in capacity of 17%, incurring more operations staff costs, route charges and landing charges.“Maintenance and overhaul also increased by 64% as higher provision for engine overhaul was made as a result of higher number of leased aircraft on the completion of sales and leaseback transaction in 4Q18.“Following the adoption of MFRS 16: Leases, aircraft operating lease expenses were no longer recognized as part of the income statement but as a reduction of lease liabilities. The aircraft operating lease expense were replaced by recognition of depreciation and interest,” it said.“During the quarter, total group revenue grew 9%, from RM2.55bil recorded in 1Q18 to RM2.78bil in 1Q19,” it said, adding the growth was due to an 18% increase in total passengers carried and increase in load factor from 87% to 88%.“However, overall unit passenger revenue decreased by 3% from RM218 to RM212,” it said.AirAsia also said Ebitda was rose by 6% to RM678.4mil from RM642.9mil. The growth in revenue was offset by the increase of staff costs and user charges and related expenses in line with the increase in capacity of 17%, incurring more operations staff costs, route charges and landing charges.It also said that maintenance and overhaul also increased by 64% as higher provision for engine overhaul was made as a result of higher number of leased aircraft on the completion of sales and leaseback transaction in 4Q18.

Source: The Star May 29, 2019 10:50 UTC