AirAsia Group Bhd.

In the news

AirAsia shares suspended after auditor questions carrier's future Jul 8, 2020
Vietnam blocks new airlines until 2022 despite market duopoly Jul 7, 2020
AirAsia suffers painful loss as COVID-19 crisis bites Jul 6, 2020
Asia needs to resume air travel faster, says airline group head Jun 19, 2020
Cathay Pacific bailout shows Asian airline recovery has a way to go Jun 19, 2020

Company Background

From its beginnings with just two jets and debt of $11 million in 2001, AirAsia has grown to become a profitable short-haul budget carrier in Asia with a fleet of close to 200 aircraft. The group operates mainly in Asia-Pacific region, including operations in Indonesia, the Philippines and Thailand. AirAsia recently launched AirAsia India in an alliance with Tata Group, plying India's domestic market. It is also seeking a re-entry into Japan in a tie-up with Rakuten Japan, after its first joint venture with All Nippon Airways broke up in 2013.

AirAsia is 23% owned by Tune Air, a private company controlled by Group CEO Tony Fernandes, a former executive of music producer Time Warner. Inspired by the success of its peer Ryanair in Europe, he runs the airline strictly adhering to the low-cost and no-frills business model, and made flying affordable to many in Asia. AirAsia's success has led to the burgeoning of budget carriers in the region, many of which are owned by full-service airline companies. The group recently introduced premium services targeting business travelers and parcel delivery services to boost its ancillary income. Its listed associate, AirAsia X, is a long-haul budget carrier, flying all over Asia.

Business Summary

AirAsia Group Bhd. engages in the provision of air transportation services. It operates through the following geographical segments: Malaysia, Thailand, and Indonesia. The company was founded by Abdel Aziz bin Abu Bakar, Anthony Francis Fernandes, Conor John McCarthy, and Kamarudin bin Meranum in 1993 and is headquartered in Kuala Lumpur, Malaysia.

Financial Highlights

Dec 2019	MYR	USD
Revenue	12,706.15M	3,066.91M
Gross Profit	969.61M	234.03M
Operating income	388.12M	93.68M
Income before tax	-68.18M	-16.45M
Net income	-303.72M	-73.31M
EBITDA	2,376.21M	573.55M
Diluted EPS	-0.09	-0.02
Dividends Per Share	0	0
Total Assets	25,146.59M	6,147.56M
Total liabilities	22,293.53M	5,450.07M
Total equity	4,440.26M	1,085.50M
Operating cash flow	3,721.78M	898.33M
	Currency in MYR	Currency in USD

Historical Data

MYR | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	6,297.65M	6,846.08M	9,709.72M	10,638.29M	12,706.15M
Gross Profit	1,621.65M	1,995.88M	1,853.18M	805.14M	969.61M
Operating income	1,351.18M	1,879.09M	1,629.40M	25.66M	388.12M
Income before tax	215.15M	1,704.69M	2,087.78M	1,335.23M	-68.18M
Net income	541.19M	1,621.65M	1,628.77M	1,967.00M	-303.72M
EBITDA	2,054.44M	2,590.21M	2,493.67M	611.01M	2,376.21M
Diluted EPS	0.19	0.58	0.49	0.58	-0.09
Dividends Per Share	0.04	0.12	0.12	0.24	0
Total Assets	21,888.23M	23,653.45M	23,528.26M	19,446.59M	25,146.59M
Total liabilities	17,437.38M	17,025.67M	16,818.18M	13,261.32M	22,293.53M
Total equity	4,452.32M	6,632.98M	8,048.11M	7,784.45M	4,440.26M
Operating cash flow	2,256.14M	2,244.77M	2,052.46M	524.07M	3,721.78M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	1,610.78M	1,652.56M	2,258.32M	2,636.25M	3,066.91M
Gross Profit	414.78M	481.78M	431.02M	199.52M	234.03M
Operating income	345.59M	453.58M	378.97M	6.35M	93.68M
Income before tax	55.03M	411.49M	485.58M	330.88M	-16.45M
Net income	138.42M	391.44M	378.82M	487.44M	-73.31M
EBITDA	525.47M	625.24M	579.99M	151.41M	573.55M
Diluted EPS	0.04	0.14	0.11	0.14	-0.02
Dividends Per Share	0.01	0.02	0.02	0.05	0
Total Assets	5,097.99M	5,272.72M	5,813.75M	4,705.76M	6,147.56M
Total liabilities	4,061.34M	3,795.29M	4,155.71M	3,209.03M	5,450.07M
Total equity	1,036.99M	1,478.59M	1,988.66M	1,883.71M	1,085.50M
Operating cash flow	577.06M	541.86M	477.37M	129.87M	898.33M

Valuation Measures

Dec 2019
PER	--
ROA	-1.36%
ROE	-4.96%
Operating margin	3.05%
Profit margin	-2.39%

Key executives

Chief Executive Officer: Tharumalingam Kanagalingam
Chief Operating Officer: Adrian Jenkins
Group Chief Financial Officer: Pattra Boosarawongse
Group Head-Information & Communication Technology: Kin Choy Lau
Head-Engineering: Nadzri Hashim

Shareholders

Tune Live Sdn. Bhd. (16.7%)
Tune Air Sdn Bhd (15.4%)
Permodalan Nasional Bhd. (7.4%)
Employees Provident Fund (4.7%)
AIA Bhd. (2.1%)
The Vanguard Group, Inc. (1.7%)
Dimensional Fund Advisors LP (1.5%)
W97n Emerging Markets Opportunities Portfolio (1.1%)
Saudi Arabian Monetary Agency (Investment Management) (1.0%)
Eastspring Investments (Singapore) Ltd. (0.9%)

Contact Details

Website:http://www.airasia.com
Address: RedQ, Jalan Pekeliling 5, Kuala Lumpur, 64000, Malaysia
Phone: +60.3.8660.4333

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Competitors

Cebu Air Inc.
Bangkok Airways Public Co., Ltd.
PT Garuda Indonesia (Persero) Tbk Class B
PAL Holdings, Inc.
SpiceJet Limited
Vietjet Aviation JSC
Thai Airways International Public Co. Ltd.
China Southern Airlines Company Limited Class H
China Eastern Airlines Corporation Limited Class H
Singapore Airlines Ltd.
El Al Israel Airlines Ltd
Nok Airlines Public Co., Ltd.
Spring Airlines Co., Ltd. Class A
InterGlobe Aviation Ltd
Ryanair Holdings Plc
Qantas Airways Limited
JG Summit Holdings Inc.
International Consolidated Airlines Group SA
Controladora Vuela Compania de Aviacion SAB de CV Class A

Last Updated on 8 Jul, 2020