AirAsia to post below expectation 2Q results (ext: Edge)

AirAsia Bhd is expected to report below-expectation net profit of RM203.4 million and core profit of RM83.2 million in the quarter ended June 30, 2009 (2QFY09) as yield dropped for the first time in almost two years, said CIMB Research.
"AirAsia's 2Q revenue has traditionally been stronger than 1Q but this is unlikely to be the case this year," it said in a note. AirAsia is scheduled to release its results end of August.
The research firm said the difference between the projected net profit and core profit is RM71 million in exchange translation gains and RM50 million in deferred tax income.
"If our calculations are accurate, the 2Q performance will be below expectations," it added.
The research house said in the quarter under review, the airline had to respond to aggressive discounting by Malaysia Airline System Bhd (MAS) and H1N1 fears by lowering its yield by an estimated 18% quarter-on-quarter (q-o-q).