Net profit for the three months through March totaled 172 million ringgit ($56.4 million), down 23 percent from a year earlier, AirAsia said in a statement.
Revenue jumped 20 percent year-on-year to 1.05 billion ringgit ($344 million) and operating profit surged 46 percent to 242 million ringgit ($79.3 million) despite higher jet fuel prices.
AirAsia hopes to grow to become one of the world’s largest airlines by 2020 with up to 510 planes. It has expanded rapidly the past few years as lower ticket prices and strong economic growth in Asia stimulated demand for air travel.
“What is particularly significant for us is that our operating profit margins were also significantly higher year-on-year, demonstrating that we are maintaining tight control of costs even as we grow revenues,” said Chief Executive Tony Fernandes.
AirAsia said its Indonesia and Thai operations both posted higher net profit.
The AirAsia group as a whole carried 7.23 million passengers during the quarter, up 19 percent from 6.06 million a year earlier.
Fernandes said forward bookings in the second quarter are higher than a year earlier despite the reintroduction of a fuel surcharge in early May.
The carrier has hedged 17 percent of its fuel needs for the second half of the year.
AirAsia plans to launch its Philippines joint venture in the fourth quarter and is in talks to set up a Vietnam hub in Ho Chi Minh, Fernandes said.
