AirAsia X posted a net profit of RM25.1 million in the quarter ending September 30, 2022, as compared to the net loss of RM652.5 million in the preceding quarter. The airline reported a slightly lower revenue at RM100.1 million compared to RM 107.2 million in the last quarter due to a reduction in revenue from the freight services segment due to normalized scheduled flight operations.
Commenting on the company’s performance for the quarter, AirAsia X Malaysia CEO Benyamin Ismail, said: “AAX 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.”
The company reported a strong recovery with an EBITDA of RM25.4 million while profit before tax for the period stood at RM23.8 million. Interestingly the airline reported the passenger load factor just less than 10% short of its pre-COVID-19 levels and closed at 73%. The company carried a total of 80,385 passengers as compared to 8,892 passengers during the period from April - June 2022. Seat capacity grew to 110,615 during the quarter from 27,521 in the preceding quarter with the introduction of new routes.
The number of sectors increased to 291 from 226, while the company added many new routes including Sydney, and two new dense-short-haul routes to Kota Kinabalu and Kuching to its network in September 2022. The airline also increased frequency to existing markets in Seoul and Delhi to cater to strong pent-up demand.
In respect of the performance of AirAsia X Malaysia and AirAsia X Thailand (TAAX), Tunku Dato’ Mahmood Fawzy, Chairman of AirAsia X remarked: “As we undertake the strategy to focus on flying our most popular and historically-proven profitable routes first, we are very much pleased to report that the AAX Group is riding high on the robust demand for affordable mid-range travel across the region. In terms of our associate’s performance, TAAX posted a revenue performance of $ 6.1 million during the quarter, with a net loss of $ 52.2 million. As it progresses with its rehabilitation plan, TAAX’s cash balance is recorded at $ 19.9 million on the back of stringent cash control management.”
The company reported a cash balance of RM79.5 million for the period ending 30 September 2022 - an increase of beyond 100% as compared to RM25.1 million in the preceding quarter. This was achieved predominantly on the back of a V-shaped air travel revival supporting the resume of scheduled passenger flights to many of its most popular and profitable destinations, along with charter and cargo flights.
Currently, AAX operates a fleet of six A330s from a fleet of nine A330 aircraft as two A330 aircraft were returned during the quarter under review. The airline expects to increase its operating fleet to 13 A330 aircraft by the first half of the calendar year 2023 to meet strong consumer demand.