KUALA LUMPUR (Feb 23): RHB Research Institute said AIRASIA BHD []’s FY11 core profit before tax exceeded its forecast by 20% but missed the market consensus by 7%.

It said on Thursday the low-cost carrier, being mindful of the sustained high crude oil prices, will continue with its four-pronged strategy to absorb the high fuel cost via: (1) Boosting sales; (2) Boosting anciliary income; (3) Raising fuel surcharge if need arises; and (4) Continued cost reduction initiatives.

“By putting more new aircraft in high-growth markets outside Malaysia but with long gestation periods, AirAsia may not be able to immediately squeeze or maximise earnings from new aircraft,” it said.

RHB Research said as far as the Japan venture is concerned, AirAsia believes that it is about “doing it right and well, rather than first (that is ahead of a competitor)”.  AirAsia targets the maiden launch earliest in August.

“Fair value raised by 24% from RM2.99 to RM3.72. Upgrade to Market Perform,” it said.