Touting its persistence in bringing the low-cost model to Southeast Asia, its success in securing governmental support for more open competition and dedicated airport terminals and a brand that "is the most recognizable ASEAN airline," AirAsia reported net earnings of MYR498.1 million (US$142.1 million) for the fiscal year ended June 30, more than double the MYR201.7 million earned in the prior 12 months.

"For the past five years we have maintained unconditional focus and discipline to the low-cost model," CEO Tony Fernandes said. "We are committed to the short-haul, no-frills concept which has been proven successful all over the world. In the process, we have invested significantly to build a solid foundation and to create a platform for sustainable growth."

During the financial year AirAsia opened bases in Kota Kinabalu and Kuching, launched 19 routes and placed an order for up to 100 A320s.

The company's full-year revenue rose 52% to MYR1.6 billion and operating profit soared 139% to MYR280.6 million from MYR117.6 million in FY06. It enjoyed a 53% lift in passenger numbers to 8.7 million as traffic rose 47% to 9.86 billion RPKs and capacity climbed 43% to 12.39 billion ASKs. Load factor was ahead 2.1 points to 79.6%.

While average fare dipped 2% to MYR171 "due to a 6% shorter stage length," ancillary revenue improved 77% and yield grew 11%. Unit cost rose 7% to US$0.032 and fell 4% to US$0.016 excluding fuel.

Fourth-quarter profit of MYR185.1 million represented a 42% increase from the MYR130.8 million earned in the year-ago period. Operating profit was up to MYR123.5 million from MYR36 million.

In FY08 AirAsia will take delivery of 23 A320s and return five leased 737-300s, operating 72 total aircraft by year end comprising 44 A320s and 28 -300s. It currently flies 33 737s and 25 A320s. It plans to launch 12-15 new routes this year, with China as the "core focus" as "demand for our services is robust and we have developed our distribution channel to cater to the Chinese markets."

The carrier expects passenger boardings to increase 29% to 18 million this year and fares to "improve slightly," with yield climbing 2%-5% and pre-tax profit growing year-over-year.