The carrier said a lower average base fare of MYR455 (USD106) stimulated demand. Scheduled services revenue contributed 61% of total revenue and ancillary revenue increased 41%, driven by the implementation of dynamic baggage and seat pricing, extension of IFE availability and premium lounges.
RASK decreased 7% due to increased capacity on existing routes, resulting in lower yields. CASK improved 7% and non fuel CASK improved 16% due to better cost efficiencies and higher aircraft utilisation.
AirAsia X Group CEO Kamarudin Meranun said: "Despite challenging market conditions, we still managed to deliver the numbers in what was historically a lean quarter which again attests to the commercial viability of the long-haul low-cost model".
Result highlights:
- Three months ended 30-Jun-2017:
- Revenue: MYR1036 million (USD239.1 million), +17.3% year-on-year;
- Ancillary: MYR193.5 million (USD44.7 million), +41.3%;
- Costs:
- Fuel: MYR353.7 million (USD81.6 million), +50.1%;
- Aircraft operating lease: MYR237.5 million (USD54.8 million), +11.9%;
- Operating profit: MYR7.0 million (USD1.6 million), -65.1%;
- Net profit: MYR47.4 million (USD10.9 million), +4555%;
- Passenger numbers: 1.0 million, +27%;
- Load factor: 75%, +7 ppts;
- Revenue per ASK MYR13.24 sen (USD3.1 cents), +15%;
- Cost per ASK: MYR13.20 sen (USD3.0 cents), -2%;
- Cost per ASK excl fuel: MYR9.67 sen (USD2.2 cents), +1%;
- Average sector length: 4872 km, +4%;
- Revenue: MYR1036 million (USD239.1 million), +17.3% year-on-year;
- Six months ended 30-Jun-2017:
- Revenue: MYR2217 million (USD505.2 million), +19.6%;
- Ancillary: MYR402.4 million (USD91.7 million), +37.4%;
- Costs:
- Fuel: MYR731.4 million (USD166.7 million), +52.8%;
- Aircraft operating lease: MYR480.4 million (USD109.5 million), +14.7%;
- Operating profit: MYR67.3 million (USD15.3 million), -46.2%;
- Net profit: MYR57.8 million (USD13.2 million), -68.0%;
- Total assets: MYR4247 million (USD967.8 million);
- Deposits, cash and bank balances: MYR403.3 million (USD91.9 million);
- Total liabilities: MYR3251 million (USD740.9 million).
- Revenue: MYR2217 million (USD505.2 million), +19.6%;
*Based on the average conversion rate at MYR1 = USD0.230839 for 2Q2017
*Based on the average conversion rate at MYR1 = USD0.227886 for 1H2017
AirAsia X increases capacity in 2Q2017 to prepare for 'historically strong' upcoming quarters
Malaysia AirAsia X increased ASKs in 2Q2017 "to set the tone for future quarters", especially the "historically strong" 4Q2017 and 1Q2018, according to AirAsia X Group CEO Kamarudin Meranun. Australia remains the highest revenue contributor for AirAsia X's Malaysia operations but "China is fast catching up". The average base fare suffered from yield pressure as the carrier increased capacity on core existing routes under its "market dominance strategy". Mr Kamarudin said revenue growth of 17% year-on-year in a competitive environment "proves that travel demand across our segments are still high".
AirAsia X to 're-strategise' in Australia, focus on North Asia opportunities in 2H2017
AirAsia X Group CEO Kamarudin Meranun said (24-Aug-2017) the group "plans to re-strategise its position in Australia while focusing on the opportunities available from North Asia" in 2H2017. The carrier will also streamline operations "to further unlock greater synergies with AirAsia Group" and expects cost reduction initiatives to deliver up to 10% cost savings. AirAsia X CEO Benyamin Ismail said forward bookings are ahead of 2016, showing "demand to fly remains strong" and reflecting "growing evidence that consumers are prioritising expenditure on flights and holidays above other non-essential items". Mr Kamarudin said: "The Group looks to improve on its strategy of purposeful investment in securing high yield, high traffic routes and build market dominance in core markets across the region which will then drive competitive advantage with sustainable returns".
The Blue Swan Daily recently caught up with AirAsia X Berhad (Malaysia) CEO Benyamin Ismail (prior to the release of the results) at the 2017 CAPA Australia Aviation & Corporate Travel Summit, 3-4 August. Mr Ismail discussed the future of AirAsia X, its 10 year anniversary in Australia and what sets AirAsia X apart.