In common with its sister airlines in the broader AirAsia family, medium-haul specialist AirAsia X is back in black and on its strategy to full financial health. In the primary quarter of 2023, the airline posted a net profit of RM328 million (72.2 million) and returned shareholder equity to the positive side of the ledger.
While creating wealth is paramount to an airline’s survival, it’s equally pleasing that AirAsia X has got ahead of the demand curve by adding more aircraft and filling them. By comparison, lots of Asia’s largest carriers have taken far too long to bring back capability within the region despite high demand for seats pushing airfares higher and restraining aviation’s recovery.
More A330s on the way in which back
Thankfully that is changing quickly now, and AirAsia X is reaping the rewards from returning more of its parked Airbus widebody aircraft, activating two more in the primary quarter. The AirAsia X fleet, including aircraft operated by AirAsia X Thailand, has 22 aircraft, including 20 Airbus A330-300s and two A330-900s.
Photo: AirAsia X
At the tip of March, AirAsia X (AAX) said it was operating nine of its fourteen aircraft, while affiliate AirAsia X Thailand had five out of eight within the air. Commenting on bringing more aircraft back into service, AAX CEO Benyamin Ismail said yesterday:
“Our key priority stays to make sure more aircraft are activated inside the stipulated timeline with all safety requirements fulfilled. We’ve been actively engaging with third-party aircraft lessors for the induction of additional aircraft to affix AirAsia X’s growing fleet. We’re pleased to verify that as of May 2023, AirAsia X has 17 aircraft inside its fleet, with 11 activated and operational.”
In the primary quarter (1Q23), AAX generated revenue of RM548.8 million ($121 million), which was around 50% of what it earned in 1Q 2019. Because it continues to be laboring under the Practice Note 17 classification, AAX was keen to indicate that shareholder equity turned from a negative RM285.2 million within the previous quarter to a positive RM40.8 million ($9 million) in 1Q23.
Passenger numbers surged to 504,476 in 1Q23, and capability climbed to 630,069 seats, producing a powerful load factor of 80%. The additional capability was needed for resumed routes to Osaka (Japan), Busan (South Korea) and Shanghai (China) and increased frequencies on the Tokyo route. The quarter was largely unaffected by the March reopening in China, but AAX is optimistic it can launch more flights as China has been one in every of its hottest markets.
AirAsia X Thailand can be on the up
Affiliate airline AirAsia X Thailand (TAAX) posted revenue of RM356.8 million ($78.5 million) and made a net profit of RM92 million ($20.2 million). During 1Q23 had 329,913 seats available and carried 289,813 passengers, returning a load factor of 88%. TAAX didn’t add any recent destinations in the primary quarter but since then has announced the return of its Bangkok-Shanghai route, which an Airbus A330-300 operates.
Photo: Airbus
AirAsia X operates around 83 flights to 16 destinations weekly, and Ismail said it can ramp up frequencies and launch more destinations in China while reviewing recent services to Istanbul (Turkey) and potentially Central Asia. AAX can be benefitting from the recovery of the AirAsia Group, with FlyThru passengers climbing greater than 146% to 130,033 in 1Q23.
AAX also said it was working closely with Capital A Berhad, [the parent organization] to leverage synergies in fleet and route network optimization across the group. This has increased per-passenger ancillary revenue by 24% to RM244 ($54), primarily from upselling more checked bags and other connecting fees related to FlyThru traffic.
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