AirAsia Group’s Q2 net cash drops as six A320s join

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AirAsia Group's cash balance was hit by 80 million ($25.3 million) ringgit in the second quarter of this year as the carrier took delivery of six new aircraft.

During the three-month period to 30 June 2010, the Malaysian low-cost carrier generated 187.77 million ringgit cash flow from operating activities and another 440.26 million ringgit cash flow for financing activities, but used 707.03 million ringgit cash flow for investing activities.

AirAsia says the lower net cash flow is the result of capital expenditure requirements as six new Airbus A320-200s delivered during the three-month period.

The 78.99 million ringgitt net cash loss reversed the first quarter this year (Jan-March period), when AirAsia generated 189.84 million ringgit net cash flow. As a result, net cash flow increase in the first six months of 2010 was 110.85 million ringgit, up from 76.34 million ringgit recorded in last year's interim results.

Cash and cash equivalents at the end of the first half totalled 829.3 million ringgit, up from 197.1 million ringgit at 30 June 2009.

Group's total debt as of end of 30 June 2010 was 7.58 billion ringgit. Group's net debt after offsetting the cash balances amounted to 6.72 billion ringgit compared with 6.24 billion ringgit at the end of the first quarter.

AirAsia posted a 199 million ringgit net profit for the second quarter of 2010, up from 139 million ringgit reported in last year's corresponding period.

The Group will take delivery of six A320 aircraft in the third quarter of this year, two of which will be operated in Malaysia and four in Thailand.

In the fourth quarter, four A320s will be delivered, one of which will be operated in Malaysia and three in Indonesia.