AirAsia X posts 6.5 mil second quarter profit

Tokyo, Japan - October 30, 2014: Thai AirAsia X (TAAX) plane's wing with logo and Mt.Fuji, the plane flying over Tokyo-Japan to Bangkok-Thailand. AirAsia as Asia's Leading Low Cost Airline.

AirAsia Group’s long-haul low-cost airline AirAsia X Berhad has recorded a historic first ever profit for the second quarter since initial public offering (IPO).

For the second quarter to June 2016, the airline posted operating profit of RM20.0 million (AUD6.5 million) while net profit after tax stood at RM1.0 million (AUD325,000).

This was mainly due to better average base fare and load factor improvement seen across all core routes, especially China.

Profit was also boosted by strong revenue growth of 35% year-on-year to RM883.2 million on the back of 71% year-on-year increase in scheduled flights revenue, due to stronger demand as the quarter ended with a 75% load factor, up 7 percentage points.

AirAsia X Group CEO Datuk Kamarudin Meranun said, “While the second quarter has historically been a lean quarter for us, we have managed to overcome all odds and record our first second quarter profit since inception.”

“We continue to see improvement across all segments. In 2Q16, Australia contributed the highest growth to Malaysia AirAsia X (“MAAX”) operations. Revenue from Australia increased 56% year-on-year on the back of higher passenger traffic while average base fare improved 15%. Revenue from China also continued to improve and grew 47% year-on-year while load factor improved 11ppts year-on-year to 82% and average base fare rose by 53%.”

The Company took delivery of two aircraft, both under operating lease for the Malaysian operation to cater for an expanding network, bringing the total fleet to 30 as of August 2016. There will be no more deliveries until 2018.

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