KUALA LUMPUR (Nov 27): AirAsia Group Bhd slipped into the red in the third quarter ended Sept 30, 2019 (3QFY19) with a net loss of RM67.46 million compared with a hefty net profit of RM804.03 million a year ago.
The low-cost carrier said in the quarterly result announcement that the board did not declare any dividend in 3QFY19.
AirAsia, whose share price has been drifting lower, explained that the losses were due mainly to the fair value loss on derivatives amounting to RM237.7 million plus RM206.3 million of unrealized losses on foreign exchange, net off against gain on disposal of property, plant and equipment of RM92.1 million.
AirAsia share price dropped one sen to close at RM1.75 giving it market capitalisation of RM5.84 billion. The aviation stock has declined nearly 14% year to date.
For the nine-month period ended Sept 30, 2019 (9MFY19), the carrier posted net profit of RM99.46 million, down sharply from RM2.21 billion a year ago. The cumulative revenue, however, was higher at RM8.75 billion compared with RM7.67 billion.
The big drop in net profit was mainly due to the massive RM1.24 billion that was booked in as depreciation of right of use asset as a result of the adoption of MFRS 16 starting this year.
Source: The Edge Markets