Air Asia cuts costs to boost margins

 

AirAsia Berhad has cut its costs in order to maintain profit margins, according to its 2013 fourth quarter financial data.

The airline company maintained its revenue from the third quarter of 2013, a total of RM $1.35 billion.

The company also posted an ‘earnings before interest and tax’ margin of 23 per cent, claiming that this margin is the result of continual cost cutting, extracting as much value from the organisation as possible.

“I am pleased that our cost reduction exercise is continued into the 2013 fourth quarter and that AirAsia was able to achieve a cost per available seat kilometre (“CASK”) down 10 per cent, from 14.11 sen down to 12.77 sen year on year," AirAsia Berhad chief executive officer, Aireen Omar said.

“This highlights the drive in our staff in guaranteeing productivity is maximised and operations are optimised which allow us to further reduce CASK-ex fuel by 14 per cent year on year from 6.63 sen to 5.73 sen.”

In 2014, AirAsia is planning to combine personnel across its different branches in order to save on staff costs. 

Source = ETB News: T.N.
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