Malaysia: Air Asia Budget Carrier Posts 6.9% Gain

AirAsia's net profit rose 6.9% on the year to 149.33 million ringgit ($41 million) for the January-March quarter, the Malaysia-based low-cost carrier said Thursday.

Fuel costs fell more than 9% to make the largest contribution to the profit growth. The airline also flew fewer flights, mainly in Indonesia.

Passengers on Indonesian routes declined 26% after a late-December flight crashed into the Java Sea. But overall passenger volume grew 3%, thanks mainly to better-performing Malaysian and Thai flights.

Ticket prices dropped 9% in the Malaysian market amid stiff competition. Sales dipped slightly as a result.

Falling fuel prices, stemming from cheaper crude oil, helped major Southeast Asian airlines boost their net profits during the quarter. Their sales also increased, except at AirAsia.