Press Release

April – June Quarter Report 2008

Strategy Intact to Capitalise on Weakening Competitors

AirAsia Berhad, Asia’s leading low cost carrier is pleased to announce the unaudited results for the second quarter ended 30 June 2008 and provide a review of recent notable events and achievements.

Tony Fernandes said:

“Revenue for the quarter has increased by 41% to RM608 million as the Company carried 20% more passengers to 2.8 million with 16% higher fares. The core operating profit was at RM30 million, flat growth to last year’s performance after stripping out a one off gain of RM73 million from the sale of 19 interest rate swaps. This is a commendable performance given that unit fuel price increased by 65% to US$142.5 per barrel. The Malaysian Ringgit has weakened and this has resulted in a translation loss of RM77 million. Due to this charge, AirAsia posted a profit after tax of RM9.4 million. Load factor was at 76%, which is in line with expectations as we added significant capacity of 33% and introduced six new routes during the period. Yield (Rev / ASK) was up by 13%, significantly better than our expectations. This buoyant and distinctive demand has enabled us to manage yield better. Ancillary income has delivered stellar performance with 60% growth against the same period last year. The checked baggage fee introduced in the quarter has helped to recover some impact of the higher fuel prices without undermining passenger demand. Unit cost excluding fuel improved by an impressive 19% stemming from productivity gains and increased number of Airbus A320 into the fleet. However, when fuel cost is included, the unit cost was at 3.57 US cents per ASK, 10% higher than the same period last year. The first half performance is very encouraging with revenue growth of 38% to RM1.1 billion. Passenger growth has increased by 20% and yields have increased by 11% against the same period last year. Unit cost was up by 8% to 3.44 US cents per ASK as a unit jet fuel price...