KUALA LUMPUR, Aug 12 (Bernama) -- AirAsia's revenue for the second quarter of this year has increased 16 per cent year-on-year and four per cent quarter-on-quarter to RM928 million due to higher fare and traffic.

Stockbroking research firm, ECM Libra Investment Research, said this would make the first half of this year's revenue hit 50 per cent of the budget airline's RM3.6 billion target for the current financial year.

"Revenue is expected to be sustained at 21.5 sen per kilometre in the first quarter of the current financial year, higher by 33 per cent year-on-year.

"We expect overall cost/available seat kilometres to rise year-on-year to 11.5 sen/available seat kilometres mainly on higher jet fuel," said ECM Libra in a statement Thursday.

The firm also expects AirAsia to record five per cent year-on-year higher adjusted net profit of RM135 million (up 22 per cent quarter-on-quarter), assuming that non-fuel cost remains unchanged on a quarterly basis, it added.