KUALA LUMPUR, Sept 16, 2008 (AFP) - Budget carrier AirAsia said Tuesday it would launch daily flights between Bangkok and Hong Kong from October as it continues to expand its network despite high oil prices.

The airline said it was also adding a second daily flight on its Kuala Lumpur-Hong Kong service due to strong demand.

"AirAsia has continued to buck industry trends with its rapid expansion plans," it said in a statement.

"The Hong Kong-Bangkok route will provide increased access to Thailand for the huge tourism market in Greater China."

As part of the launch, the airline said it was offering 5,000 free seats, although passengers must pay for administrative fees and fuel surcharges.

AirAsia has been bullish despite global economic jitters, but its balance sheet was hit in the three months to June, with net profits falling 95 percent due to high fuel costs and foreign exchange losses.

However, the airline's founder Tony Fernandes said in August that AirAsia was also benefitting from the economic slowdown as more travellers switched from full-service carriers to budget airlines.