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MANAGEMENT DISCUSSION & ANALYSIS
REVENUE
RM BILLION
CASK
SEN
OPERATING PROFIT
RM BILLION
ANCILLARY REVENUE
RM BILLION
RASK
SEN
2017
2017
2017
2017
2017
9.71
13.13
2.16
1.93
15.13
6.85
11.27
2.07
1.66
14.19
2016
2016
2016
2016
2016
42
%
INCREASE
17
%
INCREASE
5
%
INCREASE
16
%
INCREASE
7
%
INCREASE
Cash Flow & Debt
Cash inflow from operations stood at
RM1.91 billion, compared to RM2.24 billion
in the previous year. As at 31 December
2017, our cash position amounted to
RM1.88 billion. We ended the year with
a reduced total debt of RM9.31 billion as
compared to RM10.58 billion and a net
debt of RM7.43 billion as compared to
RM8.84 billion in 2016 after offsetting
our cash balances of RM1.88 billion.
Net gearing, meanwhile, improved
substantially from 1.33 times as at end
2016 to 1.11 times as at end 2017, following
the repayment of borrowings and the
equity injections of RM1,006.2 million by
the two of us. As a result, AirAsia Berhad’s
cash position grew to approximately
RM1.88 billion as at the end of December
2017.
Meanwhile, to mitigate the company’s
exposure to fuel price risks, currency
risks and interest rate risks, we hedged
approximately 78% of AirAsia Berhad
(AAB)’s fuel consumption requirement for
2017 at USD60 per barrel, about 57% of
AAB’s USD currency risk, and 100% of our
interest rate risks. For the year, the US
Dollar to Ringgit exchange rate averaged
4.2812.
Capital Expenditure
In 2017, as part of our fleet renewal
programme, and to meet the Group’s
expansion plans, we received 20 new
aircraft – 17 Airbus A320neo and three
Airbus A320ceo. These aircraft were
financed via asset-backed bank financing
and sale and leaseback for tenures
between 12 and 15 years. In addition, we
returned two Airbus A320ceo aircraft
that were on lease to AirAsia Philippines
to the third-party lessors and sourced 11
additional Airbus A320ceo aircraft from
operating lessors’ portfolios to increase
our fleet growth to 29 aircraft.
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AirAsia Group Berhad
PERSPECTIVE
90