AirAsia shows 8% drop in profits

AirAsia has reported a 7.9 per cent drop in annual group pre-tax profit due to higher finance costs and depreciation and amortisation charges as it took delivery of new aircraft.Its group pre-tax profit fell to RM115.517 million (US$31.38 million) for the twelve months ended 30 June 2006 from RM125.400 million for the previous year.

* Net profit for the year however soared 13.8 per cent on-year to RM126.943 million following a government grant of an investment allowance (IA) of RM13.61 million for the financial year ended June 30 2006, AirAsia said in a filing to Bursa Malaysia on Aug 29.

* The Ministry of Finance granted the IA in the form of 60 per cent of qualifying expenditure incurred within the period of five years starting from July 1 2004 to June 30 2009, to be set off against 70 per cent of statutory income for each year of assessment.