AirAsia Bhd recorded a lower pre-tax profit of RM202.874 million in the first quarter ended March 31, 2011, compared with RM256.182 million in the same period last year.

Its revenue, however, increased to RM1.05 billion from RM870.605 million previously.

'What is particularly significant for us is that our operating profit margins were also significantly higher year-on-year, demonstrating that we are maintaining tight control of costs even as we grow revenues,' said Group Chief Executive Officer, Tony Fernandes in a statement today.

'Yes, fuel prices shot up - but that is something beyond our control. Our response is not to wring our hands and moan, but to use our creativity to address the issue and find ways to overcome this challenge. And our first quarter results indicate that we are on the right path,' he said.

On fuel hedges, he said the low cost airline operator had hedged
approximately 17 per cent of its fuel requirements for the second half so far for this year.

'We are monitoring oil prices very closely and the moment we perceive an opportunity, we will not hesitate to add to our hedges,' he added. -- Bernama