AirAsia profits in 2009, but times are getting tougher

AirAsia cannot be immune from the cold economic winds sweeping the world. The LCCs is facing increasing headwinds: fuel prices are rising in line with recovering economic growth, Malaysia Airlines is being recapitalised and coming out of its shell, ancillary revenue growth is waning, network expansion targets (ie India ad Vietnam) look more risky than its previous growth profile and its much-needed new LCC Terminal is looking like being delayed by another 6-12 months beyond its 3Q2011 timeframe. [876 words]

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This report contains the following subheadings:

• Blood-bath in India?
• Fourth quarter yields slump
• Potential remains strong, present less certain

This report contains the following charts and tables:

• AirAsia Group pax growth, ASK growth and RPK growth
• Airline unit cost/ASK vs. Stage Length
• Ancillary income/pax and ancillary income/pax growth: 1Q2008 to 4Q2009