Despite a MYR3.1 billion ($741.8 million) in revenue, an increase of 18% year-on-year (YOY), AirAsia Group Berhad still ended the 2019 third quarter with a MYR67 million net loss, reversing the MYR804 million profit in Q3 2018.

The company’s net operating profit also fell 97% YOY to MYR2 million.

The LCC said the result was primarily because of fleet restructuring from owned to leased, driving MRO costs to MYR272 million under the Malaysian Financial Reporting Standard (MFRS) 137 provisions of assets under MFRS 16 rules. The airline also incurred MYR238 million fair value loss on derivatives and a MYR112 million foreign exchange loss, as well as investments and losses in its digital technologies.

The group, consisting of parent airline AirAsia in Malaysia, and air operator’s certificates (AOCs) in Thailand, Indonesia, Philippines, India and Japan collectively, carried 20% more passengers to 13 million.

Ancillary revenue grew 26% YOY to MYR686 million, contributing to 23% of the group’s revenue. Non-airline ancillary income was up 72% to MYR168 million, with the fastest growth coming from the BigPay digital payment system, up 393%. 

Parent airline Malaysia AirAsia saw revenue improve 3% YOY to MYR1.89 billion, although yields decreased 5% in a bid to increase market share by 3 points. It made a loss of MYR49.3 million after tax.

Indonesia AirAsia saw strong growth as income climbed 72% YOY to IDR1.83 trillion ($129 million). Four new aircraft increased capacity (ASK) and passenger growth (RPK) by 58% and 63% YOY, respectively. The performance reversed the IDR213 billion loss to an IDR61.2 billion profit in Q3 2019, the second consecutive profitable quarter.

AirAsia Philippines narrowed its losses from PHP1.69 billion ($32.4 million) to PHP367 billion and also seeing double-digit growth in operating numbers. RPKs and ASKs were up 39% and 27%, respectively.

Still the smallest subsidiary, AirAsia Japan grew the fastest, thanks to an addition of a single Airbus A320, bringing the total fleet to three. RPK and ASK were up 80% and 95% YOY, respectively, its revenue also swelled 86% YOY to JPY1.3 billion (15.6 million).

Chen Chuanren, chuanren@purplelightvisuals.com