I'm sure Air Asia do make a profit. It's easy to get passengers when the prices are low, but at what cost? Profits are slim and any adverse movement in fixed costs could wipe out the company's stability. Just look at Tiger as a group, in biz for 6 years and yet to turn a profit. Sure they are flying lots and planes and people around the globe but as of yet, no real money out of it. And you really have to wonder, what's the point?
Tiger in Australia,and certainly in it's early days, was never set up to specifically churn a large profit outcome. It was Singapore Airlines way to kick the QF Group in the teeth for for sticking it's snout into the Asian
gravy train.
Hypothetically,if the QF group pulled out of Asia then you would see Tiger dissapear from AUS.