Summary
- AirAsia X has reported a surge in net profit, driven by a rise in seat capability and the return of more widebody Airbus A330s to service.
- The airline’s seat capability has increased by 26 times year-on-year, with 814,422 seats flown within the second quarter of 2023.
- AirAsia X plans to proceed its recovery by progressively increasing network capability and adding more aircraft to its fleet, with a concentrate on core markets and demand.
Malaysia’s low-cost widebody specialist AirAsia X Berhad is surging back to full health with a second-quarter net profit of RM5.5 million ($1.16m) in comparison with a net lack of RM652.2 million ($137m) in the identical period last 12 months. With more of its widebody Airbus A330s returning to service AirAsia X generated revenue of RM512.9 million ($108m), greater than 4 times its revenue in Q2 2022.
The basics are driving recovery
Releasing its second-quarter (2Q23) results yesterday, AirAsia X said that the rise in earnings is primarily attributable to the surge in seat capability. At the top of June, the airline was operating eleven of its Airbus A330s in comparison with just five within the corresponding quarter last 12 months, boosting seat capability 26 times year-on-year to 814,422 seats flown in 2Q23.
Photo: James Chutimeth | Shutterstock
Turnover for the quarter reached greater than 50% of the 2019 level, while the variety of aircraft operated remained lower than half of the operational fleet in 2019. During 2Q23, AirAsia X (AAX) carried 621,984 passengers at a healthy load factor of 76%, with seat capability, as measured by available seat kilometers, recovering to 42% against the corresponding period in 2019.
AAX CEO Benyamin Ismail said the main focus is to construct yield and enhance the recovery of network capability progressively in step with demand from core markets as the primary priority, adding:
“Within the last 12 months, we have now been prudent by reinstating services from initially two destinations and 3 times weekly flights. Comparatively, we now have 18 destinations and 96 weekly flights, and this exponential growth is anticipated to grow further as more aircraft are brought back to service and connectivity with FlyThru will likely be further amplified.”
AAX plans so as to add yet one more aircraft to its fleet of 17 Airbus A330s, and Ismail said the airline is working with its partners to make sure all aircraft might be returned to service in a timely manner. To fulfill the looming summer peak season, AAX expects to have 16 of the widebodies back in service when the year-end peak travel season begins in the approaching months.
Where is the expansion coming from?
Associate company AirAsia X Thailand (TAAX) reported a complete revenue of RM351.9 million ($73.9m) and a net operating profit of RM33.5 million ($7m), although the latter became a net lack of RM73.6 million ($15.5m) attributable to unrealized foreign exchange losses.
Photo: Airbus
In 2Q23, TAAX carried 311,337 passengers, up by 28 times year-on-year, with increased demand coming mainly from flights to Tokyo, while a brand new service was launched to Shanghai.
Throughout the second quarter, AirAsia X maintained its regular progress in post-COVID recovery by launching flights to Bangkok, Beijing and Australia’s tourist mecca of the Gold Coast. As demand grew, AAX increased frequencies as much as seven times weekly to Sydney, between Sydney and Auckland, Melbourne, and Osaka in Japan.
In comparison with 2Q22, the airline operated 2,234 flight sectors, up 27 times from the 81 it operated in 2Q last 12 months. AAX can also be trying to China to proceed its gradual recovery and has plans in place to ramp up operations on routes in China as demand increases.