AirAsia X's net profit has plunged 85% to RM46.8 million ($11.1 million) in its second quarter of 2019 due to several factors including the recognition of prior years’ losses in AirAsia India, higher maintenance and overhaul costs; as well as a fine from Malaysia’s competition watchdog agency.
EBITDA for the consolidated group stood at RM473 million during the period, down 9% year-on-year primarily due to share of prior years’ losses at AirAsia India previously not recognised amounting to RM147 million.
There was also an additional cost related to building up RedBeat Ventures entities, 105% higher maintenance and overhaul expenses due to higher maintenance provisions of approximately RM160 million on the back of higher number of leased aircraft following the recent aircraft monetisation exercise and a RM10 million fine from the competition watchdog.
The consolidated group posted airline revenue of RM3.0 billion, up 17% from RM2.6 billion experienced in the second quarter of 2018. The strong double-digit growth in revenue was driven by an 18% year-on-year increase in passengers carried to 12.8 million.
Ancillary revenue also grew by 39% from the corresponding period last year, recorded at RM687 million for the consolidated group, driven by both traditional airline ancillary and non-airline ancillary streams.
The group posted positive operating cash flow (post operating lease) generated in the first half of the year, amounting to RM267 million.