AirAsia’s results for the quarter capping on December 31 have revealed a 16% revenue growth compared to the same quarter last year.

The company recorded a RM 1.48 billion revenue, which was largely put down to double digit growth in both average fare and ancillary income per passenger, which jumped 13% and 31% year on year, respectively.

The number of passengers carried by the Malaysian airline sat at 5.9 million, with a strong load factor of 78%, while no new aircraft joined the fleet in the quarter, leaving it at 81 at the close of 2014.

“In the last quarter of 2014 we have been seeing competitors acting more rational and driving fares up, allowing us to do the same,” AirAsia Berhad’s CEO Aireen Omar commented.

“I am happy to say that our average fare is up 13% in 4Q14 to RM171 which indicates a more rational market and that demand is recovering, which was initially impacted by the aviation incidents and kidnapping cases in Sabah.

“Ancillary has also performed very well compared to the year before with 31% increase. These prove yet again that unlike other airlines, AirAsia has a robust and innovative model that could survive any given situation.

“Baggage and assigned seat products remain to be the biggest contributors to the ancillary revenue. However, this year we are seeing a huge growth coming from our Fly-Thru product, a service that allows passengers to connect from one flight to another seamlessly for a connecting fee.”

“As the Company continues to grow, it is important for us to keep our focus and be discipline in maintaining a lean operation without compromising on safety. So many big things happened in 2014 and one being the move from our old airport LCCT to the new klia2. Along with the move, a number of restructuring had to be made to our operations which indirectly impacting costs in many areas.

“2015 for me will be a year of ‘cleaning-up’ where I will be focussing on making sure that the Company improves its efficiency, manages its resources well, drives revenue up and be discipline in maintaining our low cost model to take advantage of a better competitive environment and lower fuel price. 2014 was a challenging year hence we are even more driven in performing better this year.”

Thai AirAsia posted a revenue of THB 7.88 billion in the fourth quarter, a big increase of 21% from the same period last year, which AirAsia Group’s CEO Tony Fernandes said showed how the destination could rebound from political instability.

Indonesia AirAsia similarly saw a year on year increase, hitting an 11% revenue growth, operating at a profit of IDR 23.39 billion, a big turnaround from the operating loss of IDR 369.09 billion in the same period last year.

Philippines AirAsia saw an increase in yield and losses narrowing substantially, with hopes the move to Terminal 3 will help continue to increase demand, as the airline continues to focus onleisure destinations such as Puerto Princessa, and add capacity to Kalibo and Cebu.

AirAsia India’s (AAI) brand looks strong in the country, with a load factor of 80% recorded in the fourth quarter for 2014, despite the additional aircraft only allowed to operate domestic routes for its first five years due to local regulations.

“We have seen the competition becoming more rational in the second half of 2014. After five consecutive negative year-on-year average fare performance, starting from 3Q14 we have seen the curve bottomed in and moved back in the positive side in 4Q14,” Fernandes said.

“This trend is continuing into 2015, and coupled with the low fuel price, the Company has decided to remove its fuel surcharge to push demand up further.”

“For the whole of 2015, AirAsia Group has hedged 50% of its fuel requirements at an average hedge cost of USD88 per barrel for jet kero, which brings our effective cost as of now down to USD80.”

Fernandes said AirAsia is in a good cash position, and for 2015 would focus on increasing its position through capacity management, refinancing older aircraft through sales and leasebacks, and not taking in large numbers of aircraft to help preserve cash.