AirAsia Berhad today reported its results for the quarter ended 31 December 2014 (4Q14), and the company posted quarterly revenue of RM1.48 billion.
The huge increase in revenue recorded was due to the double digit growth in both average fare and ancillary income per passenger which increased 13 per cent and 31 per cent year on year respectively.
AirAsia’s yield has improved as we see a more rational competitive landscape in 4Q14, allowing the Company to push fares up, the significant increase in ancillary business contribution to the overall revenue year on year also contributes to the significant increase in Revenue per Available Seat Kilometre.
During the quarter under review, AirAsia recorded a 12 per cent increase in operating profit year on year to RM226.30 million, proving yet again that the AirAsia Low Cost model is a resilient model that could withstand any given situation.
AirAsia Berhad chief executive officer Aireen Omar, said that in the last quarter of 2014 the airline had the freedom to drive fares up.
“Our revenue, measured in terms of RASK, was reported at 15.95 sen which saw an increase of 7 per cent y-o-y from 14.88 sen. I am happy to say that our average fare is up 13 per cent in 4Q14 to RM171 which indicates a more rational market and that demand is recovering,” Ms Omar said.
AirAsia chief executive officer Tony Fernandes, said that 2014 was a tough year for the airline, but 2015 looks bright.
“2014 was a difficult year, but over the years since inception, we have proven time and time again that AirAsia, through its resilient and robust model, driven by passionate and determined Allstars, is able to overcome these challenges and come out stronger – 2015 will be that year,” Mr Fernandes said.