KUALA LUMPUR: AirAsia X Bhd
(AAX) is optimistic about the second half of the financial year, despite historical seasonality trends.
The carrier said the promising forward sales trajectory reinforces its confidence in the resilience of fare and load factors post-recovery.
“For the second half of the financial year, the group is pleased to share that the booking trend outlook for its flight services and ancillary is positive. Barring any unforeseen circumstances, the group is optimistic that it will maintain this strong trajectory as we move into one of our strongest quarters between October - December.
“Furthermore, the recent movements in foreign exchange and jet fuel prices have been particularly reassuring, and the group continues to zero in on ensuring its cost structure discipline is upheld,” AAX said in the notes accompanying its financial results.
In the second quarter ended June 30, AAX posted a lower net profit of RM4.82mil, or earnings per share of 1.10 sen compared with RM5.54mil, or 1.20 sen in the same period last year.
Revenue rose 30.4% to RM669.1mil against RM512.9mil last year.
In the first six months, the carrier posted a net profit of RM84.9mil on revenue of RM1.58bil.
The group’s fleet size stood at 18 aircraft with 16 activated for the financial quarter ended June 30.
“The group maintains its focus on the full reactivation of its fleet, and expects to have its fleet fully activated by the end of the financial year 2024. For the immediate upcoming quarter, the group expects to activate an additional aircraft, bringing total operational aircraft to 17 aircraft,” AAX said.
Following the strong performance of its initial venture in Almaty, Kazakhstan, AAX is confident about finding similar opportunities. It has announced plans to expand its connections and will start operating flights to Nairobi, Kenya, in November 2024.
Meanwhile, the proposed acquisition, which was initially announced on April 25, is envisioned to establish an enlarged group of airlines catering to a full spectrum of short, medium and long-haul air travel, and pave the way for elevated synergistic benefits through centralised decision-making and more coordinated network plans.
“The group expects to secure long-term sustainability by leveraging on the well-established ‘AirAsia’ brand and the ecosystem, granting the group the avenue to capitalise on the anticipated air traffic recovery.
“In addition, the group will also gain access to an orderbook with about 400 aircraft deliveries; this provides the group with unbounded expansion opportunities at a time when growth opportunities are limited due to bottlenecks in the aircraft manufacturer's supply chain which in turn delayed aircraft delivery for the group,” AAX said.
In July 2024, the group announced that it would undertake the proposed acquisition directly to expedite the process.
It has also announced the submission of the listing application and the draft circular to Bursa Malaysia Securities on Aug 1 for Bursa Malaysia’s review.
