KUALA LUMPUR (Feb 21): AirAsia X Bhd's (AAX) net profit in the sixth quarter for the financial period Dec 31, 2022 (6QFP2022) rose six-fold quarter-on-quarter to RM153.48 million from RM25.09 million on record average fare, higher load factor and a sharp increase in passengers carried.

The group sees fare trends to hover above pre-pandemic levels, albeit with some rationalisation on the back of high international air travel demand.

The pandemic impact is "well behind us", its chairman Tunku Datuk Mahmood Fawzy Tunku Muhiyiddin said in a statement, adding that AAX is on a strong growth trajectory to support "significant" pent-up demand for affordable mid-range travel.

"The group’s restructuring plan is progressing well as planned as it continues to provide scheduled passenger services where there is greatest demand," he said.  

In the quarter ended Dec 31 — historically AAX’s strongest quarter — revenue rose three-fold to RM339.3 million from RM100.1 million in 5QFP2022, the airline said. Quarterly earnings per share came in at 37 sen from six sen, it added.

The group recorded lower maintenance and overhaul spend in the quarter at RM10.52 million from RM112.2 million in 5QFP22, coupled with lower finance costs of RM6.73 million from RM59.38 million.

In the quarter, AAX flew 337,638 passengers, up 324% from 79,557 passengers in 5QFP2022, although much lower than 1.61 million recorded immediately pre-pandemic in 4QCY19.

This is in line with the group’s current seat capacity of 427,384 seats at end-2022, versus 1.994 million pre-pandemic.

Passenger load factor was recorded at 79% from 73% in 5QFP2022 and 81% in 4QCY2019, while average base far rose to a record RM866, versus RM625, it said.

“Ancillary revenue per passengers marked RM196 during the quarter, up 17% compared with the same period in 2019,” it added.

Meanwhile, AAX’s 49%-owned Thai AirAsia X (TAAX) recorded RM353.6 million net profit in 6QFP2022, on RM340.95 million foreign exchange (forex) gains and RM261.51 million revenue. “Barring the (forex) gain, TAAX’s core net profit would be RM12.8 million,” it said,

However, the group’s share of loss of TAAX, which has not been equity accounted for, amounted to RM517.4 million. Under accounting rules, any profits will only be recognised when its shares of the profits equals the share of losses previously not recognised.

Meanwhile, the group said its logistics unit Teleport has delivered RM36 million freight revenue to AAX in the quarter, up 26% with one additional operating aircraft.

For the 18-month period ended Dec 31, 2022 (18MFP2022), AAX recorded revenue of RM878.17 million, with 417,195 passengers carried in the period for a healthy load factor of 78%.

Net profit for the period stood at RM32.98 billion, mainly arising from the completion of its debt restructuring in 1QCY2022.

“For 2023, the company expects to relaunch more of its profitable destinations and looks forward to the return to China with the announcement of the reopening of the country’s border in January 2023, in addition to our planned inaugural flight to Turkey this year,” said AAX chief executive officer Benyamin Ismail.

“The company is optimistic of the upward fare trend in the near term as demand for international air travel remains high. While we expect this to somewhat rationalise, we do not foresee the fare trend dropping beyond pre-pandemic levels,” it said.

The group expects to have 17 Airbus A330s in its active and operational fleet by end-2024. This compares with 14 planes at end-2022, of which seven are activated and operational.

TAAX’s fleet size stood at eight A330s, five of which are activated and operational.

Shares of AAX slipped half a sen or 0.74% to close at 67 sen on Tuesday, giving it a market capitalisation of RM2.77 billion.