Wednesday, August 28, 2024 AirAsia X Berhad (“AirAsia X”) demonstrated continued strength in its financial outcomes for the second quarter of 2024, concluding on June 30, 2024. The company achieved a revenue of RM669.1 million during this period, marking a 30% increase compared to the previous year, driven by persistent market demand and an expansion of its fleet to 16 operational aircraft.
During the quarter, AirAsia X reported an EBITDA of RM58.4 million and a net profit of RM4.8 million, notable achievements given the quarter’s historical trend as the weakest.
Passenger numbers soared by 42% year-over-year to over 880,000, outpacing a 30% increase in seat capacity. This surge was supported by peak travel times in major markets and the Eid holiday, with the Passenger Load Factor (PLF) reaching 83%, a seven-point rise from the previous year, and nearing 90% on routes to high-demand destinations such as China, India, and Japan. The company also saw a significant 48% year-over-year increase in ancillary revenue, which reached RM218.
2 million. This growth was fueled by a 5% rise in ancillary revenue per passenger to RM248, thanks to enhanced product offerings and better customer data utilization, including targeted personalization and booking processes, as well as updated inflight food and beverage options through SANTAN. On the network front, AirAsia X strengthened its market presence by resuming flights to Xi’an in April, expanding its network within this key market to include five destinations.
Additionally, the company increased Kuala Lumpur-Bali flights to 14 weekly to meet robust leisure demand. In contrast, routes to Busan, Auckland, and the Gold Coast were discontinued as part of a strategic network optimization, resulting in a 31% increase in total flights compared to last year. AirAsia X Thailand (TAAX) also performed well, with a revenue of RM378.
9 million, an increase of over 7% year-over-year, and a net profit surpassing RM11 million. TAAX maintained a strong PLF of 84%, reflecting a resilient demand with passenger growth outstripping a 3% increase in ASK Capacity. As of the end of June 2024, AirAsia X maintained a fleet of 18 A330s, with plans to reactivate additional aircraft in the upcoming quarters.
TAAX is set to expand its fleet from eight to ten A330s by the end of the year. AirAsia X 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.
” In a significant strategic move, AirAsia X announced in early August the submission of a listing application to Bursa Malaysia Securities Berhad for acquiring Capital A’s equity interests in AirAsia Aviation Group Limited and AirAsia Berhad. The process is underway, with a draft circular under review and an Extraordinary General Meeting anticipated within 21 days of approval, targeting a completion by year’s end. The company is also progressing with a fundraising initiative aiming to secure up to RM1 billion.
Further updates on these acquisitions will be provided in the forthcoming shareholders’ circular..
