Airline

AirAsia X revenue increases 23% during strong Q3

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AirAsia X revenue increases 23% during strong Q3

AirAsia X has reported an increase in revenue of 23% in comparison to the same period of last year, rising to RM795 million ($178.6 million) compared to RM648.4 million ($145.7 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) equated to RM76.2 million ($17.1 million) this quarter, compared to RM132.1 million ($29.7 million) in the same quarter last year. 

Despite the airline typically seeing a quieter third quarter, the company recorded a net operating profit of close to RM3 million ($674,100), while net profit for the quarter charted RM121.6 million ($27.3 million) on the back of a net foreign exchange gain.

Most notably during the quarter, company shareholders approved the proposed acquisition of Malaysian investment firm Capital A's equity interest in AirAsia by the company for the value of RM6.8 billion ($1.58 billion). The acquisition was approved at an extraordinary general meeting (EGM) held on October 16, 2024., with 99.08% of shareholders voting in favour of the acquisition.

Additionally, shareholders voted in favour of the resolutions for the proposed issuance of free warrants, proposed private placement to raise gross proceeds of RM1 billion ($232.7 million), proposed share capital reduction and proposed granting of subscription shares.

AAX CEO Benyamin Ismail commented on the results, he said: “The full reactivation of our fleet is fast-approaching as we returned an additional aircraft to service in November, with only one more aircraft left on ground.”

He added: “The fleet reactivation journey has been challenging particularly as spare parts scarcity remains a drawn-out complication in the industry, but we are nearing the finish line. In addition, we are in the concluding stage of engagement with a lessor for the induction of one additional aircraft in early 2025, bringing the fleet size to 19 aircraft by the first half of next year.”

On the operational front, AAX carried 1.08 million passengers during the quarter, a 34% increase compared to 2023, while its passenger load factor rose by four percentage points to 84%. The airline ramped up seat capacity by 27% when looking at the comparable period of the year prior, increasing to 1.28 million, which was supported by an increase in operational aircraft from 14 to 16 over the past year.

AAX's associate, AirAsia X Thailand (TAAX), saw a revenue increase of 5% during the three months between June and September to RM300.7 million ($65.6 million), as the number of passengers carried increased by 342 thousand while its passenger load-factor was sound at 80%. TAAX also posted a net profit of RM55 million ($12.4 million) for the period.

Additionally, as of November 2024, AAX is nearing the completion of its fleet reactivation efforts, with only one aircraft remaining to be reintroduced into service.