Business

AirAsia X back in black after RM5.54-mil net profit in second quarter

Revenue jumps to RM512.91 mil driven by scheduled flight recovery

Updated 3 years ago · Published on 28 Aug 2023 7:42PM

AirAsia X back in black after RM5.54-mil net profit in second quarter
AirAsia X Bhd has 11 aircraft activated as of June 30, says the airline in a filing with Bursa Malaysia today. – ABDUL RAZAK LATIF/The Vibes file pic, August 28, 2023 

KUALA LUMPUR – AirAsia X Bhd (AAX) has returned to the black with a net profit of RM5.54 million in the second quarter ended June 30, 2023 (2Q FY2023), from a net loss of RM652.52 million registered in the same period last year. 

Similarly, the long-haul, low-cost airline’s revenue jumped to RM512.91 million from RM107.18 million previously, over four times higher year-on-year (y-o-y), driven by the recovery of the company’s scheduled flight operations as more aircraft were brought back to service.

“As of June 30, 2023, the company had 11 aircraft activated, compared to five aircraft during the same corresponding period last year,” it said in a filing with Bursa Malaysia today. 

In a statement, AAX said the turnover for the quarter marks a notable recovery rate of over 50% compared to the company’s performance in 2019, in which the number of aircraft it operates remains less than half of the operational fleet number in 2019. 

During the quarter under review, it said the company carried a total of 621,984 passengers, delivering a surge of 70 times y-o-y, consequently posting a healthy passenger load factor of 76%, which is 47 percentage points higher than the 29% reported for the corresponding quarter ended June 30, 2022. 

“In terms of associate’s performance, AirAsia X Thailand (TAAX) reported overall revenue of RM351.9 million, five times higher than the same period last year, and demonstrated a strong recovery of over 90% from 2019.

“In 2Q FY2023, TAAX posted a net operating profit of RM33.5 million as the airline recovers,” it said. 

Meanwhile, AirAsia X chief executive Benyamin Ismail said the company is optimistic about China’s massive potential as a key market.

He expects flight frequency to China to grow three-fold by the end of the year as traffic from China gains momentum.

“In terms of fleet, we are looking at adding one aircraft to the existing fleet of 17 aircraft, bringing the total number of aircraft in the fleet to 18.

“At this juncture, we remain on track to have at least 16 aircraft operational by the final quarter of the year and are assured that we will maximise the upside from the market once the year-end peak travel season kicks in,” Benyamin said. 

In terms of its financial position for 2Q, he said AAX’s cash balance stood at RM269 million and shareholders’ equity increased to RM96.1 million.

“The company is also focused on addressing its Practice Note 17/2005 (PN17) status, and in July 2023, submitted a waiver application to Bursa Securities.

“As the matter progresses, AAX shall ensure that material announcements are made accordingly as per due process,” Benyamin added.

No dividend was declared for the second quarter. – Bernama, August 28, 2023

Related News

Malaysia / 4mth

Family asked to disembark plane: Comprehensive review of policies, procedures underway - AirAsia X

Business / 3y

AirAsia X bids to exit PN17 status

Business / 3y

AirAsia X sees opportunity as regional airlines pull out of Queensland route

Malaysia / 3y

AirAsia X uses vinyl tape on seats due to spare parts shortage

Business / 3y

AirAsia X records RM153.48 mil net profit for three months

Business / 3y

AirAsia X aims to increase Busan flights by year-end

Spotlight

Malaysia

Papagomo acquitted for second time in sedition case over government, Israel claims

Malaysia

ECRL fares start at RM60, with 50% discounts for children, seniors and OKU

Malaysia

DKU seeks court action against Ismail, 16 others over Negeri Sembilan royal dispute

By Alfian Z.M. Tahir

Malaysia

Kampung Manis: Dreams of 227 families to own replacement homes draw closer

Malaysia

Fadhlina takes legal action over video of 2023 Parliament speech

By Alfian Z.M. Tahir

Malaysia

Civil servants urged to turn Selangor Sultan’s anti-graft message into action

Malaysia

Animal welfare group urges probe into alleged sexual abuse of cat in viral video

Malaysia

Macron appeals for calm after France riots: 2,400 arrested, nearly 1,000 officers injured

Malaysia

Malaysia renews offer to help Indonesia fight fires

You may be interested

Business

Malaysia pushes chip-design startups to turn technology into global sales

Business

Oil prices near US$110 raises pressure on Malaysia’s fuel costs as Hormuz risks persist

Business

Nation’s trade surplus hits RM232.4b in nine months as exports surge 34%

Business

Guthrie denies links to Indonesia forest fires, says no active blazes found on its plantations