KUALA LUMPUR (Aug 24): AirAsia X Bhd's (AAX) net profit surged 4,550% or over 46 times to RM47.44 million for the second quarter ended June 30, 2017 (2QFY17) from RM1.02 million in the previous year's corresponding quarter on the back of foreign exchange gains.

In a statement, AAX said revenue for the quarter jumped 17% to RM1.04 billion from RM883.16 million, driven by a 34% increase in passengers carried, exceeding the 26% increase in seat capacity.

Meanwhile the higher profit for the quarter was attributed to foreign exchange gains of RM28.47 million and higher deferred tax of RM21.02 million.

The group saw lower average base fare of RM455, amid promotional activities to shore up demand. Load factor rose from 75% to 80%, despite the 26% increase in capacity to 8.45 billion.

Revenue per available seat kilometre (RASK) fell 7% year-on-year to 12.28 sen for the quarter, as yields were lower due to the higher capacity on existing routes.

Cost per available seat kilometre (CASK) improved 7% year-on-year (y-o-y) to 12.32 sen while CASK ex-fuel improved 16% y-o-y to 8.13 sen, amid better cost efficiencies and higher aircraft utilisation.

"We are pleased that despite challenging market conditions, we still managed to deliver the numbers in what was historically a lean quarter which again attests to the commercial viability of the long-haul low-cost model.

"The second quarter for AAX Malaysia has seen more ASK capacity injected as compared to the same quarter last year. This was to set the tone for future quarters especially the fourth quarter of 2017 and the first quarter of 2018, both historically strong quarters," said AAX group CEO Datuk Kamarudin Meranun.

He said AAX Thailand has seen remarkable improvement for the quarter with a strong load factor of 92% and expects the momentum to continue in the second half of 2017.

Meanwhile, AAX Indonesia has relaunched its A330 operations and saw a narrowing of its net loss for the quarter to US$3.8 million from US$9.8 million in the previous year.

For the first half of the year, net profit dropped 68% to RM57.78 million from RM180.51 million, despite revenue growth of 20% to RM2.22 billion from RM1.85 billion.

Going forward, Kamarudin said AAX intends to re-strategise its Australian operations, while also focusing on the opportunities in North Asia. It is also streamlining operations across the board for greater synergy with AirAsia Bhd.

"The group looks to improve on its strategy of purposeful investment in securing high yield, high traffic routes and build market dominance in core markets across the region which will then drive competitive advantage with sustainable returns," he said.

AAX closed unchanged at 39 sen, giving a market capitalisation of RM1.62 billion.