News
AirAsia X’s first quarter profit shrinks 94%
May 26th 2017
Kuala Lumpur-headquartered AirAsia X this week reported a first quarter net profit of MYR10.3 million (US$2.3 million), a steep 94% year-on-year decline, even though the carrier’s operating revenue through to March 31 was up 22%. Read More » Operating profit slumped 43%,to MYR60.3 million, on the back of a strong U.S. dollar and capacity additions.
The low-cost airline carried 33% more passengers in the quarter compared with the same months last year, and increased its load factor by 2%, to 84%. However, average fares decreased by 4%, unit revenues were down 6%-11% and capacity increased 29% year-on-year, to 8.2 million ASKs.
AirAsia X Group CEO and co-founder, Kamarudin Meranum said the group was experiencing “short-term earnings pressure” from currency weakness versus the dollar, as well as from its rapid capacity growth rate of nearly 30% during the quarter.” The AirAsia chief was not worried and believed extra capacity “will be well worth the long-term strategic value as yields will rise as this new capacity matures”.
On June 28, AirAsia X will launch flights to the U.S., a four times a week Kuala Lumpur-Honolulu A330 service that will operate via Osaka, using fifth freedom rights. This week, it announced a daily Kuala Lumpur-Denpasar A330 service starting from July 15.
Bangkok Don Mueang-based Thai AirAsia X reported a net profit of US$5.5 million in the first quarter. The Thai affiliate’s load factor improved 5%, to 94%, and revenue increased 17% versus capacity growth of 9%.
Indonesia AirAsia X, which had been under suspension, resumed operations with a Bali–Kuala Lumpur–Mumbai flight on May 19, followed by a new Bali-Narita route on May 24.
AirAsia X said it must improve utilization of its 22 A330-300s. Thai AirAsia X has six of the type and Indonesia AirAsia X has two. The AirAsia X carriers have 10 A350-900s and 66 A330neo on order with both models expected to enter service in 2018.
