AirAsia has seen its net profit slip for the second quarter of financial 2011 as rising fuel costs hit results.

The largest no-frills carrier in Asia saw net profit fall to $35 million for the period, down from $67 million a year earlier.

The carrier warned price volatility for aviation fuel clouded the outlook for the second half of the year.

However, this is likely to be partly mitigated by its recent reintroduction of a fuel surcharge, added the airline.

“The second quarter is traditionally one of our weaker quarters,” said AirAsia chief executive Tony Fernandes.

“But despite the challenging environment in the industry, the team has come through again.”

Revenue increased 15 per cent year-on-year to $1.3 billion in the April-June period.

Fernandes himself made headlines earlier this month with the purchase of Premier League Queens Park Rangers FC in London.