Friday 29 Mar 2024
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KUALA LUMPUR (Nov 22): AirAsia X Bhd has turned profitable again in the three months ended Sept 30, 2022 (5QFY22), on marginal growth in revenue and a significant reduction in cost for maintenance and overhaul.

The long-haul low-cost airline reported a net profit of RM25.09 million for 5QFY22, versus a net loss of RM149.14 million in the previous year’s corresponding quarter, its bourse filing showed. Revenue inched up 0.8% to RM100.1 million, from RM99.27 million over the same period.

The group recently announced a change of financial year end from June 30 to Dec 31 — hence its financial year end for 2022 will now cover a period of 18 months or six financial quarters — following the PN17 company’s restructuring exercise.

AAX said the operating environment for the next quarter is expected to contribute positively towards its financial results, with fuel prices trending in the group’s favour while it is also seeing a stronger demand.

“The group expects that all currently serviceable aircraft will be fully utilised by the end of 2022 and is currently in progress to review the network plan and aircraft leases to maximise the value to the group,” it said.

Its passenger load factor for the quarter under review stood at 73%, narrowing the gap to the 81% level recorded in pre-Covid-19 period, AAX said in a separate statement on Tuesday (Nov 22).

“Following its return to scheduled services in April 2022, the company has made notable progress in its network recovery — adding Sydney and two new dense-short-haul routes to Kota Kinabalu and Kuching to its network in September 2022.

“AAX also introduced increased frequency to existing markets in Seoul and Delhi to cater for strong pent-up demand,” it said.

AAX also highlighted that its cash balance has increased to RM79.5 million as at 5QFY22, from RM25.1 million in 4QFY22.

“This was achieved predominantly on the back of a V-shaped air travel revival, supporting the resumption of scheduled passenger flights to many of its most popular and profitable destinations, along with charter and cargo flights,” it said.

On track to recovery, AAX plans to start recruitment again

AAX Malaysia chief executive officer Benyamin Ismail said the group is now well on track in its recovery path, even as the airline is compelled to operate in a challenging operational environment dictated by high fuel prices and a weakened Malaysian ringgit against the US dollar.

“While we are cautious of the strenuous operating conditions, we remain confident that the recovery of the company is on the horizon, if not already within our reach,” he said.

Benyamin also said the group will be bringing back furloughed staff by the first quarter of next year and recruiting new flight crew again to meet the strong pent-up demand for medium-haul air travel across Asia.

“Following the most challenging period in commercial aviation history, we are back indeed, stronger than ever,” he added.

Shares of AAX gained half sen or 1.3% to 39.5 sen per share on Tuesday, giving the group a market capitalisation of RM163.85 million.

Edited ByTan Choe Choe
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