Still keeping Airasia stocks till now.

Read in newspaper.. .Aviation industry is going down. Budget airlines the worst affected by oil prices.

Now i wonder, what is the worst scenario could happen to Airasia. I dont think oil prices is gonna come down any soon.

If got take over, what will happen to my stocks?
If merger, then what?
If closing, I guess that it to my money.

Pls let me know... not sure if i want to hold it any longer..

What happen ? KLCI up but AA still do down...

Current Year Quarter 30/06/2008
Revenue 608,383
Profit/(Loss) before Tax (46,901) 
Profit/(Loss) after Tax and Minority Interest 9,417 
Net Profit/(Loss) for the Period 9,417 
Basic Earnings/(Loss) per Shares(sen) 0.40

oil broke below 110$  - it's at 109$ at 11pm now , DOW at 160 points up .... if AA doesnt rally 2moro, nothing can save it from dropping below $1 again ....

Good luck to you guys thats still holding, but I think i'll onli revisit it again below $1 ( i think Tony is doing a tremendous job ..  the flights are pretty full, all the pople i know who travel nowadays all book AA to fly ... )

AirAsia Q2 net profit plummets
By Jeeva Arulampalam Published: 2008/08/29

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A forex loss of RM76.9 million and record high jet fuel prices hurt the budget airline, leading to a 95 per cent drop in net profit to RM9.4 million


LOW-COST carrier AirAsia Bhd said second quarter net profit plunged 95 per cent to RM9.4 million due to foreign exchange losses and high fuel costs.

It had a forex loss of RM76.9 million because a weaker ringgit increased the amount of its foreign debt.

It expects a challenging third quarter, traditionally AirAsia's weakest. Last month, it had to contend with record high jet fuel prices.

Revenue grew 41 per cent to RM608 million in the three-month period ended June 30 2008, attributed to higher passenger volume as well as ancillary income.



It carried 20 per cent more passengers, or 2.8 million people, while ancillary income jumped 60 per cent to RM50.3 million.

Ancillary income refers to sales of food, beverage and travel insurance, among other things.

"The per passenger ancillary spend has increased 34 per cent to RM17.80 and ancillary income now represents 8.3 per cent of total revenue," group chief executive director Datuk Seri Tony Fernandes said in a statement released yesterday in Kuala Lumpur.

It filled 76 per cent of its planes, down from 81 per cent previously, as it added new planes and new routes had yet to do well.

Fernandes said that AirAsia had some short-term hedging, but its fuel requirements were largely not hedged.

"We will do a vanilla hedge if required, but hedging is expensive right now, so we'd rather not," he said in a conference call with analysts yesterday.

AirAsia's associate companies in Thailand and Indonesia posted losses.

"The Thai operation endured a challenging period due to escalating domestic political uncertainties," he said.

However, Fernandes said he was optimistic over the long term as other airlines had ceased operations or cut back on capacity in Thailand.

"We can invest in the business and rejuvenate the fleet with new Airbus A320 aircraft and expand our route network," he said.

The Indonesian operation was affected by the costlier fuel due to its usage of the Boeing 737-300 aircraft.

"Indonesia will receive its first Airbus A320 on September 19 and this will reduce operational cost and enhance efficiency," Fernandes added.

In the half-year period, net profit declined 37 per cent to RM170.7 million from RM272.3 milion previously.

Revenue, however, was up 38 per cent to RM1.1 billion as passenger growth increased 20 per cent.

AIRASIA, the region's biggest budget carrier, is making a risky bet.

As soaring fuel prices have forced other airlines to cut back, shed jobs and ground planes, AirAsia is doing the opposite: increasing flights, adding routes and boosting capital investment.

Last month, it even gave away a million free seats (although passengers still had to pay taxes and fuel surcharges). The seven-year-old company is aiming to fill the vacuum as other airlines reduce capacity, betting that more travellers will opt for budget flights amid a global economic downturn.

Analysts say if it survives the industry slump, AirAsia could come out a winner with increased customer loyalty and a strong route network to catch the growth wave when good times return.



"They are reasonably well-positioned for the long run, but there's always a trade-off. It's a long-term decision, which will cause some short-term pain," said Damien Horth, Asia transport analyst at UBS AG in Hong Kong.

Of course, the strategy could also backfire badly.

Last month, AirAsia reported a 95 per cent plunge in its net profit for April-June quarter to RM9.42 million. But the company chalked that up mostly to a RM77 million foreign exchange loss from a weakened ringgit, not weakness in its underlying business.

Average load factor - the percentage of seats taken up in an airplane - dipped to a still relatively strong 76 per cent, from 80 per cent in 2007.

It has a cash reserve of about RM1 billion, but outstanding debts stand at RM5.4 billion, giving it a net debt position of RM4.4 billion. Debts are set to grow as it receives new planes.

Chris Eng, analyst with OSK Securities in Malaysia, said AirAsia's growth prospects may be curbed, while its joint ventures in Thailand and Indonesia are expected to remain in the red.

"It will be challenging but we believe AirAsia can survive," Eng said, citing its efficient regional network and good cost control. - AP