AirAsia's Profit Rises, But Challenges Remain
KUALA LUMPUR"” AirAsia Bhd.'s first-quarter net profit rose 6.9% after the group reported a one-time gain from the partial divestment of a stake in an online travel venture, which offset foreign-exchange losses.
Net profit was 149.3 million ringgit ($41 million), compared with 139.7 million ringgit in the same quarter of last year, the Malaysian discount carrier said in a regulatory filing. Revenue, however, fell 0.4%.
AirAsia reported a gain of 321 million ringgit after it sold a 25% stake in AirAsia Expedia Travel to its joint venture partner Expedia Inc. in February for $86.3 million.
However, it also reported a 350 million ringgit foreign-exchange loss on its borrowings, mainly because of the decline in the value of the local currency. The company pays for its fuel and aircraft, its biggest expense items, in U.S. dollars.
Read full story: wsj.com
Posted: 3 Jun 2015 23:07:43