AirAsia posts first loss since going public

Noncash losses on fuel hedges and currency fluctuations dragged AirAsia to its first quarterly loss since going public in 2004, a MYR465.5 million ($128.2 million) third-quarter deficit that represented a reversal from the MYR180 million earned a year earlier. Principal charges comprised a MYR215 million loss related to the unwinding of the carrier’s fuel hedges, […]


AirAsia Tony Fernandes


Noncash losses on fuel hedges and currency fluctuations dragged AirAsia to its first quarterly loss since going public in 2004, a MYR465.5 million ($128.2 million) third-quarter deficit that represented a reversal from the MYR180 million earned a year earlier. Principal charges comprised a MYR215 million loss related to the unwinding of the carrier’s fuel hedges, a loss it said it will recover “in less than three months,” and a MYR213 million translation loss resulting from the US dollar’s rise against the ringgit. It said its long-term forward contracts to purchase dollars could “potentially” result in a gain of MYR366 million. Third-quarter revenue rose 43 per cent year-on-year to MYR658.5 million, a gain cited by CEO Tony Fernandes when he said the period demonstrated the LCC’s “resilience and strength.” Core operating profits swung to a MYR75.9 million loss from a MYR47.8 million profit in the third quarter of 2007.