AirAsia 3Q Profit Drops 85% on Year

AirAsia experienced an 85% drop in profits due to political instability in Thailand and financial support to its Philippine unit. Despite current challenges, lower oil prices and recovering tourism offer hope for improvement. AirAsia X, the long-haul affiliate, continues to struggle with financial issues and may need to raise equity, delay aircraft acquisitions, or cancel orders.

What was the percentage drop in AirAsia's profit year on year?

• 75%

• 85%

• 65%

• 95%

Which factor is expected to help improve AirAsia's earnings prospects?

• Recovering Thai tourism

• Higher oil prices

• Increased competition

• Decreased demand for flights

What is Tony Fernandez's outlook for AirAsia's operations in the Philippines and Indonesia?

• Uncertain

• Upbeat

• Neutral

• Pessimistic

What is one of the challenges faced by AirAsia X?

• Low operating costs

• Declining yields

• Excessive profits

• Surplus of funds

What is one potential strategy for AirAsia X to manage its aircraft order?

• Increase ticket prices

• Raise new equity

• Expand into new markets

• Reduce staff