SEPANG, 31 May 2023: AirAsia X registered a net profit of MYR328 million and revenue of MYR548.8 million during the first quarter ending 31 March 2023, marking a significant recovery of nearly 50% of the performance achieved in 2019, the company reported on Tuesday.
“These improved metrics are even more favourable as only two more additional aircraft were activated during the quarter, with another six aircraft in line to commence operations as of May 2023. Importantly, AirAsia X’s shareholders’ equity has demonstrated a positive turnaround to MYR40.8 million from a negative shareholders’ equity of MYR285.2 million in the preceding quarter, which now paves the way for AirAsia X to address its Practice Note 17 classification, subject to regulatory approval,” the airline explained in the press statement.
Cost per Available Seat Kilometres (“CASK”) reduced by over 50% to 6.50 sen compared to the same period in 2019 on the back of a revamped cost structure and rationalised capacity in the market. While operating expenses increased in tandem with the ramp-up in operations in recent quarters, this was supported by the more favourable fuel environment and further softened by an increase in ASK.
Revenue per Available Seat Kilometres (“RASK”) stood at 18.93 sen as the average base fare rationalised to MYR785 based on more normalised market capacity.
The steady climb in earnings resulted from a surge in passenger volume, the ramp-up of aircraft activation and a stronger fare environment in recent quarters.
In 1Q23, passengers increased to 504,476, driven by the New Year holidays and Spring season travel demand. This was further supplemented by the increase in seat capacity, which grew to 630,069 seats, while Available Seat Kilometres (“ASK”) surged to 2,899 million.
The fleet reactivation strategy remains on track to support the ramp-up of flight frequencies; AirAsia X relaunched even more destinations to cater to the strong demand for international travel, recommencing flights to Osaka, Busan and Shanghai, on top of increasing its services to fly seven times weekly to Tokyo.
Overall, the Passenger Load Factor (PLF) was strong at 80%, with star performers like Delhi and Tokyo posting close to 90% PLF in 1Q23. With the reopening of China for all travellers in early March 2023, AirAsia X is optimistic about the upcoming opportunities to launch more flights into the country, which has always been one of the airline’s strongest markets.
AirAsia X Thailand
Meanwhile, AirAsia X Thailand (TAAX) posted a revenue of MYR356.8 million, with a net profit of MYR92 million. During the quarter under review, TAAX carried 289,813 passengers, with a strong PLF of 88%. TAAX’s seat capacity during the quarter under review increased to 329,913 seats, while ASK rose by 40% to 1,601 million on the back of increased scheduled flights and frequencies. In 1Q23, TAAX maintained the number of destinations and recently announced the recommencement of its Bangkok-Shanghai route last April, marking its return to China.
AirAsia X raises capital
In terms of its financial position AirAsia X said in the press statement, “cash balance stood at MYR192.4 million as of the end of March 2023, and shareholders’ equity has returned to positive at MYR40.8 million.
“Recently, we announced a proposed placement of shares with key institutional investors, potentially raising up to MYR50 million of new capital, which will serve to bolster our short-term working capital requirements, strengthening the balance sheet as the company continues to recover and grow its operations in this post-pandemic era, primarily for the reactivation and maintenance of the company’s growing fleet.”
(Source: AirAsia X)
