AirAsia's profits hit by financing costs

KUALA LUMPUR (Reuters) - Malaysia's AirAsia Bhd , Southeast Asia's biggest budget airline by passenger traffic, posted a 39.23 percent fall in first-quarter profits on Wednesday, hurt mainly by higher finance costs and a foreign exchange loss on borrowings.

AirAsia earned 104.79 million ringgit in the three months ended March, down from 172.44 million ringgit in the same period last year, although the operating profit was up 6 percent, according to a stock exchange filing.

Earlier this month AirAsia said its passenger numbers were up 19 percent in the quarter at some 9.8 million.

Prior to the results 18 of 25 analysts tracked by Thomson Reuters I/B/E/S Estimates rated AirAsia shares to be a 'buy', with five calling rating it a 'hold'.

 

The shares are up about 19.71 percent so far this year, while shares in Malaysian Airline System Bhd (MAS) are up 21.22 percent.

MAS is due to announce its results on May 29.

(Reporting By Yantoultra Ngui; Editing by Greg Mahlich)