AirAsia X reports strong Q3 growth; expands Airbus A330 operations

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Airbus A380 | Airbus

By Sky Industry News

Dec 1, 2024

AirAsia X, the medium-haul airline of AirAsia Group, reported significant financial improvements for the third quarter ending September 30, 2024. The airline achieved a 23% increase in revenue compared to the same period last year. Ancillary revenue rose by 40%, and passenger numbers grew by 34%, with capacity increasing by 27%. This led to a passenger load factor of 84%.

The unaudited financial results released on Friday indicate that AirAsia X's revenue reached RM795.0 million ($174.9m), up from RM648.4 million ($142.6m) in the previous year. The airline carried 1.08 million passengers during this period.

Earnings before interest, tax, depreciation, and amortization (EBITDA) were normalized to RM76.2 million ($16.8m), down from RM132.1 million ($29.1m) in the third quarter of 2023 due to the reversal of provisions at that time. The net operating profit was nearly RM3.0 million ($0.7m), while net profit amounted to RM121.6 million ($26.8m), benefiting from a net foreign exchange gain.

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The growth in passengers and seat capacity resulted from reactivating two Airbus A330s, bringing the operating fleet to 16 aircraft compared to 14 in the previous year’s third quarter.

AirAsia X CEO Benyamin Ismail announced plans for further fleet expansion: "The full reactivation of the fleet is fast approaching as the airline returned another A330 to service in November." He added that discussions are ongoing with a lessor for an additional aircraft induction in early 2025, aiming for a fleet size of 19 aircraft by mid-next year.

Ismail also highlighted new route launches: "This month, we launched the maiden flight to Nairobi, marking AAX's first venture into the African continent."

In terms of ancillary revenue per passenger, there was a YoY increase of 4% to RM247 ($54.30). Total ancillary revenue rose nearly 40% YoY to RM267.5 million ($58.8m).

Average base fares stood at RM443 ($97.50) due to promotional campaigns marking new routes such as Changsha and Chongqing (China). Despite increased unit costs over recent months due to operational advancements and provision reversals last year, metrics remained competitive within industry peers.

AAX shareholders approved acquiring Capital A's aviation business on October 16, progressing towards fulfilling conditions required for completion.

Ismail expressed strategic ambitions: "Ultimately...we aim to realize our growth ambitions in becoming a leading player in global aviation...bridging connectivity worldwide."

Thai AirAsia X reported a YoY revenue increase of 5% to RM300.7 million ($66.1m), carrying over 342,533 passengers at an average fare of RM613 ($135). It posted a net profit of RM55 million ($12.1m).