CMPP Scoops Rp 42 Billion in Profit after Experiencing Losses

PT Air Asia Tbk (CMPP) recorded a 67 percent increase in revenue to Rp 1.66 trillion in the first half of 2019, mainly due to the rising income from airplane ticket sales by 80 percent to Rp 1.39 trillion. The increase in revenue was driven by a 58 percent increase in the number of passengers to 1.82 million and an average ticket price increase of 14 percent. Meanwhile, cost per available seat kilometer (“CASK”) and CASK excluding fuel fell by 17 percent and 25 percent, respectively. The decrease in expenses was due to lower fuel prices and marketing costs, in line with the company’s business group initiatives to switch from conventional marketing methods to digital.

As a result, the company recorded an operating profit of Rp 42 billion in this quarter, which is inversely proportional to a loss of Rp 241 billion in the same quarter last year. It also posted a positive EBITDA of Rp 33 billion during the first half of 2019, indicating a significant improvement compared to a loss of Rp 426 billion in the first half of 2018.