AirAsia X has reported their eighth consecutive quarterly profit, with second quarter net earnings of RM 4.8 million (US $1.1 million) on a 30 percent year-over-year increase in revenue to RM 669.1 million (US $155.2 million).
On Wednesday (August 28, 2024), AirAsia X reported their second quarter 2024 financial results for the period ending June 30, 2024. The carrier reported a first quarter net profit of RM 4.8 million (US $1.1 million) on a year-over-year increase in revenue of 30 percent to RM 669.1 million (US $155.2 million). AirAsia X’s second quarter load factor increased 7.0 percent to 83 percent compared to the same period last year. The carrier also reported a unit cost of 2.94 cents, and costs excluding fuel of 1.24 cents, the lowest cost among peer airlines.
In Wednesday’s announcement, AirAsia X’s CEO, Benyamin Ismail, said,
“We will continue to grow in line with demand and market conditions as well as fleet developments. We expect our two remaining aircraft to rejoin operations by the second half of the year and this is estimated to deliver further upside to our bottom line, further driven by the appreciation of the Malaysian Ringgit and lower jet fuel prices. AirAsia X’s network realignment and advancement for the past six months are on track, as we launched Almaty in Kazakhstan and ramped up additional capacity to many key destinations including China.
“I am pleased to share that the PLF for Almaty and destinations in China have thrived through this quarter and continue to scale about 90%, even as this is historically a softer travel season. The suspension of some services to Busan, Auckland and the Gold Coast, was the result of our ongoing network review in collaboration with the wider group of AirAsia airlines to ensure we are always flying the most profitable routes. Operationally, the performance of the airline is also greatly supported by our strong on-time performance at over 91% in June 2024, reflecting our commitment to operational excellence with safety as our utmost priority. We are also working closely with our airport partners for added support for our onward growth strategy and further reducing our costs through improved pricing and incentives.
“Our FlyThru metrics remained robust with a 22% connectivity rate as our teams work collaboratively on efficiency and synergistic strategies to leverage the broader group of airlines under the ‘AirAsia’ brand. This continues to unlock further potential including a more efficient network and enhanced connectivity across the regions. Unlocking wins from these synergies is especially vital for the Company’s ongoing undertaking of the proposed acquisition of Capital A Berhad’s (“Capital A”) aviation business to establish an enlarged aviation group.
“Once completed, the enlarged aviation group will be well-positioned to attract strong interest from investors, leveraging the significant growth potential of the critical aircraft orderbook which paves the way for our growth ambitions towards becoming a leading player in the global aviation industry.”
AirAsia X resumed service to Xi’an in April, expanding their China network to five destinations, including Beijing, Chengdu, Hangzhou and Shanghai. The carrier also increased frequencies between Kuala Lumpur and Bali to 14 times weekly, and suspended service to Busan, Auckland and the Gold Coast. At the end of Q2 2024, AirAsia X fleet included 18 Airbus A330s, 16 of which were activated and operational, while AirAsia X Thailand’s (TAAX) fleet stood at eight A330s, with six operational.
Source: AirAsia
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