BUDGET carrier AirAsia Group Bhd (AAGB) has slipped into the red for FY19, impacted by accounting standards and the absence of a one-off RM1.1 bil gain in 2018.
For the financial year ended Dec 31, 2019, AAGB reported a net loss of RM303.72 mil compared with a net profit of RM1.96 bil in the previous year while revenue grew to RM12.44 bil from RM10.63 bil.
The group, in a Feb 27 filing with Bursa Malaysia, said it was also affected by the recognition of one-off costs, which included consultant costs for sales and leaseback transactions of RM25 mil, tax provision and payment for a subsidiary of RM49 mil, discounting of a long-term receivable of RM40 mil and share of losses in AirAsia India of RM280 mil including recognition of prior year losses.
AAGB also pointed out that the weaker performance was due to accounting treatment of its restructured aircraft ownership, moving from owning to leasing aircraft, despite recording similar cash outflow in either financing method.
“MFRS137 accounting treatment has resulted in a 43% increase in maintenance and overhaul costs, while MFRS16 adoption negatively impacted the results by RM131 mil in FY19,” it said.
For the fourth quarter ended Dec 31, 2019 (4Q19), AAGB posted a marginally lower net loss of RM384.48 mil versus RM394.97 mil a year ago while revenue grew to RM3.35 bil from RM2.82 bil.
“Air travel demand held firm as we carried 9% yoy more passengers (in 4QFY19). Ancillary revenue for the quarter also grew by 16% yoy to RM732 mil, with non-airline ancillary revenue up 105%,” said AAGB.
AAGB’s share price closed 3 sen or 2.63% lower at RM1.11 on Feb 27.
