AirAsia X announced its financial results for the third quarter of 2023 ended 30 September 2023, saying it registered revenue of RM648.4 million, over six times higher year-on-year, reflecting about 64% recovery against the 2019 level. During the quarter, increased recovery of the company’s scheduled flight operations and additional capacity were introduced within its operational fleet. Consequently, the company’s operational expenses posted an uptick, further exacerbated by the weakening of the Malaysian Ringgit against the US Dollar. Despite an increased cost structure, a downward forex trend, and a historically slower quarter, the Company persevered and recorded a net profit of RM5.6 million.
In 3Q23, the company’s capacity surged by over nine times YoY to over one million seats, while the number of passengers flown grew 10 times YoY to over 807,000, translating to a sound Passenger Load Factor of 80%, an increase of seven percentage points YoY. This was driven by the increase in the number of operational aircraft and a growing network compared to 12 months prior. Subsequent to the recovery in seat capacity as well as the restoration of the company’s network, Available Seat Kilometres capacity trended upward to 4,412 million, demonstrating close to 12 times growth YoY. Compared to the previous quarter, the Company’s seat capacity grew by 24% quarter-on-quarter (“QoQ”) while ASK capacity rose by 26% as the number of serviceable aircraft increased by three units QoQ to 14 aircraft in 3Q23.
During the third quarter, the company maintained its momentum on its network recovery strategy; AirAsia X launched services to its second destination to India with flights to Amritsar and its fourth destination in China with flights to Chengdu, further cementing its commitment to return to the airline’s core markets first. By the end of 3Q23, AirAsia X’s flight frequency soared to 114 flights per week compared to 23 flights one year prior. Flight frequency increased by 19% QoQ, with Shanghai and Perth flight frequencies ramped up to daily flights as more capacity was activated to meet the demands of the market.
In terms of associate’s performance, AirAsia X Thailand reported overall revenue of RM287.2 million, over 10 times higher than the same period last year, with a recovery of close to 79% against the 2019 level. This quarter, following its successful rehabilitation plan, the associate posted a net profit of RM752.1 million.
AirAsia X CEO Benyamin Ismail said, “We remain committed to driving the momentum for full recovery, particularly in fleet activation. The team has been working diligently with our business partners to ensure that all aircraft can be returned to service within the stipulated timeline. This quarter alone, three additional aircraft were activated to support the company’s network growth requirements. In anticipation of the upcoming year-end peak travel season, we are on track to add one more aircraft to the fleet, bringing the total fleet size to 18 aircraft, with at least 17 aircraft operational by December 2023. We are confident that the company is well equipped to maximise the upside the market has to offer in the seasonally busiest travel period ahead.
For Editorial Inquiries Contact:
Editor Matt Driskill at matt.driskill@asianaviation.com
For Advertising Inquiries Contact:
Head of Sales Kay Rolland at kay.rolland@asianaviation.com
