AirAsia, Asia's largest low-cost carrier by fleet size, reported on Thursday its best ever yearly profit ever as the economic crisis of the past year boosted demand for cheaper air travel. The airline industry suffered last year under the weight of the global economic recession, which caused businesses to cut their travel budgets, but some recovery is under way. "Based on the current forward booking trend, the underlying passenger demand in the first quarter remains positive," said the Malaysia-based airline in its earnings notes posted on the stock exchange website. Flag carrier Malaysia Airlines signalled on Monday a cautious earnings outlook for 2010 after derivative gains on its fuel contracts helped bump up full-year net profit. AirAsia, valued at US$1.2 billion, posted a net profit of RM76.7 million (US$22.54 million) in October-December against a loss of RM201.7 million in the previous year. It booked a full year net profit of RM549 million, largely in line with the RM561.1 billion consensus estimate of 17 analysts tracked by Thomson Reuters Starmine. The budget carrier, which competes with Jetstar Asia Airways and Tiger Airways in the region, reported a net loss of RM471.7 million in 2008. The aviation industry is rebounding from a slump but still faces at tough outlook for 2010, the International Air Transport Association (IATA) said last month. AirAsia commands 53 per cent of the domestic travel market and 21 per cent of international travel in Malaysia. Ten out of 18 analysts tracked by Thomson Reuters I/B/E/S have either a "buy" or "strong buy" rating on AirAsia, with three calling it an "underperform", one rating it a "sell" and four calling it a "hold". -- Reuters
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