AirAsia X Reports Significant Profit Jump In Q6
The airline reached impressive figures on the back of strong passenger demand.
AirAsia X released its financial results for the sixth quarter of 2022, ending on December 31st, revealing impressive strides in profitability. It posted its first net profit for three years in the last quarter and has multiplied its revenues significantly since then, riding on the wave of high demand during the peak travel season in December.
Profit shoots up
AirAsia X revealed its figures for the quarter ending in December 2022 and recorded a massive improvement in revenue and profit compared to Q5. The airline earned revenue of RM339.29 million ($76.4 million) and a net profit of RM153.5 million ($34.6 million) in Q6.
AirAsia X squeezed in six quarters to its financial year ending December 31st, 2022. Its profit in Q6 is six times more than it made in Q5 when it posted a net profit of RM25.1 million. The sharp jump in revenue was majorly boosted by the year-end peak travel season, and the airline carried a total of 337,638 passengers in the last quarter.
Demand was so strong that the average Q6 base fare was at a record-high of RM866 ($195). Its Passenger Load Factor (PLF) was a decent 79%, up six percentage points from the previous quarter, and showed an over 97% recovery of the same period in 2019.
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Growth and outlook
AirAsia X hopes to continue its growth trajectory in 2023 as pent-up demand for international air travel within the region it serves translates into healthy revenues. For this year, the company expects to relaunch more of its profitable destinations and is hoping to return to China soon.
In February, it resumed services to Busan, South Korea, and added more flights to the existing routes in its network. AirAsia X has also planned its inaugural flight to Turkey this year.
AirAsia X CEO Benyamin Ismail shared his vision for the months ahead and is optimistic that fares will sustain amid rise in passenger demand. He said,
“The Company is optimistic of the upward fare trend in the near term as demand for international air travel remains high. While we expect this to somewhat rationalise, we do not foresee the fare trend dropping beyond pre-pandemic levels.”
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He also added that to meet the ever-thriving demand for flights, they are ensuring that aircraft within the Company’s fleet will be operational within the stipulated timeline, with all safety requirements met.
The airline’s management is currently in varying degrees of engagement with third-party aircraft lessors for the induction of additional aircraft within its fleet. By the year 2024, AirAsia X could have a total of 17 Airbus A330s in its fleet.
