KUALA LUMPUR, Feb 27 — AirAsia Bhd recorded a pre-tax loss of RM662.357 million for the financial year ended Dec 31, 2008, compared to a pre-tax profit of RM450.152 million in 2007.
Revenue, however, rose to RM2.640 billion from RM1.933 billion previously, due to higher passenger volume achieved and higher contribution from ancillary income, the low-cost carrier said.
During the year, passenger volume grew by 22 per cent compared in 2007, it said in a filing to Bursa Malaysia today.
AirAsia’s core operating profit was 19 per cent lower at RM171 million compared to RM211.147 million in 2007, largely due to a 47 per cent rise in the average jet fuel price.
The airline also recorded an exceptional item amounting to RM641 million which related to the provisions for unwinding its fuel and interest rate swap derivatives structures.
This was on view that the restructuring of derivative structure would safeguard the company from onerous mark to market swings, frees up equity and provide a stable cashflow, AirAsia said.
The unwinding cost is estimated to be fully recovered within eight months through savings derived from purchasing fuel and paying interest rates at spot market prices, it said.
On prospects, AirAsia said that despite that the current global economic crisis, it has managed to maintain its strong passenger traffic growth momentum as more passengers switched from full service carriers and used the airline as the primary air travel option.
The airline expects to carry 15 to 20 per cent more passengers this year, to be supported by the launch of new international services to destinations in India, China and Singapore. — Bernama
Source : TheMalaysianInsider.com
*******************************************************************************************Big loss is big
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