AirAsia May Fall After Below-View 3Q Results

AirAsia (5099.KU) may reverse Tuesday's gains after its 3Q results came in much below expectations. 

The airline said Tuesday 3Q net profit fell 53% on year to MYR152.3 million from MYR327.3 million primarily due to higher fuel expenses although revenue was up 9.9% at MYR1.08 billion from MYR979.7 million helped by an 8% rise in passenger numbers. 

Analysts say the results are substantially below market expectations with nine-months net profit accounting for only about 52% of consensus estimate of MYR814 million for FY11. The stock ended Tuesday up 0.3% at MYR3.67 ahead of the results.