AirAsia Bhd, the region's largest low-cost carrier, is 'seeing tremendous growth' as travel demand bounces back from last year's global recession.

'We're experiencing a very good third quarter,' Chief Executive Officer Datuk Seri Tony Fernandes said today in an interview in Singapore. 'We're seeing tremendous growth.'

The carrier expects to fly 30 million passengers in 2010 and it will expand its fleet, including affiliates, to 100 planes by the year-end, Fernandes said.

The airline is planning to 'moderate' growth after an initial spurt gave it a dominant share of the Southeast Asian low-cost travel market, he said.

'We now have a size where no one can really challenge us,' he said. 'We can now moderate our growth, still be aggressive, but grow at a pace everyone is comfortable with.'

He reiterated that AirAsia will add between eight and 12 planes a year. The airline group includes affiliates in Thailand and Indonesia, and long-haul carrier AirAsia X

The carrier gained 0.5 per cent to RM2.06 at the 12.30 pm trading break in Kuala Lumpur. The stock has jumped 49 per cent this year.

The carrier's board will also discuss whether to pay dividends when they meet at the end of the year, Fernandes said. - Bloomberg