Brent crude oil has hit US$113 a barrel on the Libyan unrest. This spells trouble for airlines as the cost of fuel will escalate.
This evening AirAsia is going to announce its 2010 results and its boss Datuk Seri Tony Fernandes has given an insight of what to expect - "Shame oil price will knock shine off awesome results but we are in great position to handle this crisis. We thrive during crisis'' - on Twitter.
As at 6pm
AirAsia reported an impressive set of financials with net profit reaching the billion mark to RM1.066bil from RM506mil. This is more than 111% higher than what it reported for same period in 2009.
Revenues were also 26% up to RM3.9bil from RM3.1bil. Revenue growth was supported by 13% growth in passenger volumes and average fare that was 5% higher at RM177 compared to RM168 achieved in 2009.
Earnings per share shot to 38.6 sen from 20.60 sen.
Fuel bill RM1.2bil versus RM900mil.
Debts stood at RM7.8bil up from RM7.6bil in 2009.
Unfortunately, no dividends were declared.
Separately, The New York Times in its article headline "airline passengers should prepare themselves for sticker shock this year'' said "as the carriers have tried to keep up with rapidly rising oil prices, they have already increased their fares four times since the start of the year, compared with only three increases for all of 2010. The airlines have also raised some of their fees, imposed summer peak-time surcharges and added hefty fuel surcharges on international flights.''
It added that “Airlines are under a lot of pressure,” said Severin Borenstein, a professor of public policy at the Haas School of Business at the University of California, Berkeley. “Demand is recovering but rising fuel prices may short-circuit that.”
AirAsia may have made its first billion but MAS posted a 65% drop in net profit to RM226mil for the fourth quarter ended Dec 31, 2010 from RM640mil.
But operating profit increased five fold to RM137mil from RM29mil due to a 5% increase in ticket sales.
The lower profit is because its fuel bill was higher despite carrying many more passengers in the quarter.
For full year the capacity was higher by 4% but still the airline reported lower net profit of RM237mil from RM522mil in 2009. Revenue was higher at RM13.5bil vs RM11.7bil in 2009.
But the boss of MAS Tengku Azmil Zahruddin is quite happy with what the airline has achieved. He kept saying it was "good profit'' when he released the results today.
This evening AirAsia is going to announce its 2010 results and its boss Datuk Seri Tony Fernandes has given an insight of what to expect - "Shame oil price will knock shine off awesome results but we are in great position to handle this crisis. We thrive during crisis'' - on Twitter.
As at 6pm
AirAsia reported an impressive set of financials with net profit reaching the billion mark to RM1.066bil from RM506mil. This is more than 111% higher than what it reported for same period in 2009.
Revenues were also 26% up to RM3.9bil from RM3.1bil. Revenue growth was supported by 13% growth in passenger volumes and average fare that was 5% higher at RM177 compared to RM168 achieved in 2009.
Earnings per share shot to 38.6 sen from 20.60 sen.
Fuel bill RM1.2bil versus RM900mil.
Debts stood at RM7.8bil up from RM7.6bil in 2009.
Unfortunately, no dividends were declared.
Separately, The New York Times in its article headline "airline passengers should prepare themselves for sticker shock this year'' said "as the carriers have tried to keep up with rapidly rising oil prices, they have already increased their fares four times since the start of the year, compared with only three increases for all of 2010. The airlines have also raised some of their fees, imposed summer peak-time surcharges and added hefty fuel surcharges on international flights.''
It added that “Airlines are under a lot of pressure,” said Severin Borenstein, a professor of public policy at the Haas School of Business at the University of California, Berkeley. “Demand is recovering but rising fuel prices may short-circuit that.”
AirAsia financial results are out. Lets wait a day for MAS results and a surprise from MAS this Saturday.
AirAsia may have made its first billion but MAS posted a 65% drop in net profit to RM226mil for the fourth quarter ended Dec 31, 2010 from RM640mil.
But operating profit increased five fold to RM137mil from RM29mil due to a 5% increase in ticket sales.
The lower profit is because its fuel bill was higher despite carrying many more passengers in the quarter.
For full year the capacity was higher by 4% but still the airline reported lower net profit of RM237mil from RM522mil in 2009. Revenue was higher at RM13.5bil vs RM11.7bil in 2009.
But the boss of MAS Tengku Azmil Zahruddin is quite happy with what the airline has achieved. He kept saying it was "good profit'' when he released the results today.
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