AirAsia X Posts A Profit After The Pandemic

Malaysia’s aviation industry is seeing a rebound after the pandemic. AirAsia X, the low-cost carrier providing long-haul operations, turns the tables and posts a net profit of RM5.5 million for the second quarter of 2023, which ended June 30. The airline had suspended its flight operations and completed a financial restructuring during the pandemic.

AirAsia X has revealed the registered revenue of RM512.9 million, four times higher year-on-year, and the ancillary revenue per passenger has reached RM236. The no-frills airline expects the ancillary revenue will increase in the coming quarters as the new products are set to be rolled out. Compared to same time last year, the airline recorded a net loss of RM652.5 million.

The airline carried over 620,000 passengers with a load factor of 76% in the second quarter, an increase of 70 times year-on-year. The airline currently operates to 18 destinations with 96 weekly flights.

As of June 30, the airline had 11 aircraft activated, compared to five aircraft at the same time last year. In the meantime, AirAsia X has unveiled its strategy for increasing the operational flight. The airline currently owns a fleet of 17 aircraft, planning to operate 16 aircraft by the final quarter of the year. The additional flights could pave the way for expanding the network. Also, it plans to add one aircraft to the fleet. But the airline didn’t provide more information on the new aircraft.

Expanded Service Across Oceana

AirAsia X continued to spread its wings again in the second quarter, launching flights to Bangkok as well as to Gold Coast, Australia. Also, it scaled up its services to Sydney; Auckland, New Zealand; and Osaka, Japan. In addition, AirAsia X believes China has enormous potential for increasing sales, aiming at ramping up operations to China and expects flight frequency to China to increase by three times by the end of the year.

“We continued to focus on our consolidated growth strategy to build yield and enhance the recovery of our network capacity gradually in line with demand in our core markets as our first priority,” Benyamin Ismail, AirAsia X’s CEO, said.

Meanwhile, AirAsia X Thailand has posted net operating profit of RM33.5 million. However, due to unrealized foreign exchange losses, the airline reported a net loss of RM73.6 million. The airline carried a total of over 310,000 passengers, up by 28 times year-on year.

The stakeholders in Malaysia are experiencing the recovery as well. In July, Malaysia Airports reached 89% of passenger numbers of the pre-pandemic levels and recorded net profits for the second quarter in a row.

However, Malaysia Airlines has been facing a setback. Earlier, the country’s flag carrier announced the delivery of the 737-8. However, the aircraft manufacturer confirmed delivery will be delayed due to the improperly drilled holes on the aft pressure bulkhead.