KUALA LUMPUR (Aug 19): AirAsia X Bhd (AAX) closed its financial year 2022 (FY22) on a negative note as it slipped back into the red in its fourth quarter ended June 30, 2022 (4QFY22) with a net loss of RM652.52 million.

It was profitable in the preceding quarter (3QFY22), when it made a net profit of RM33.62 billion after writing back a similar amount to profit following the completion of the group's debt restructuring.

The revenue of AirAsia Aviation Group's low-cost long-haul affiliate dropped to RM107.18 million in 4QFY22 from RM113.01 million in 3QFY22, its Bursa Malaysia filing showed.

No comparative figures from the year-ago corresponding quarter were provided as the group changed its financial year end from Dec 31, 2020 to June 30, 2021.

For the full FY22 ended June 30, 2022, the Practice Note 17 company registered a net profit of RM32.8 billion — after RM33.6 billion of provisions made for default under contracts and liabilities had been forgiven and reversed during the year following the completion of its debt restructuring process. Annual revenue came in at RM438.77 million.

As travel restrictions gradually relaxed across the region, AAX said it has started operations to Incheon, Seoul and Delhi. It is expected to ramp up its operations by the end of 2022 and early 2023 to Japan, Australia, New Zealand, the UK, Istanbul, Dubai and Jeddah.

"The planned routes have been taken into account on routes with high cargo loads and demand, which will contribute positively towards the financial of the company.

"The company is currently operating under a high fuel price environment, weakening of the ringgit against the US dollar and obtaining regulatory approvals of the routes. The company also expects the load factor to build gradually as there are challenges in some of the markets such as the longer Australian visa application process, travel restrictions in Japan and Taiwan, and restricted entry in China," it added.

AAX shares finished half a sen or 1.02% higher at 49.5 sen on Friday (Aug 19), giving it a market capitalisation of RM205.33 million. The stock has declined 23.85% since the beginning of the year.