AirAsia X slips into the red in third quarter on higher expenses

PETALING JAYA: AirAsia X (AAX) reported a net loss of RM43.3 million for the third quarter ended Sept 30, 2017 versus a net profit of RM11.03 million in the same quarter a year ago, dragged down by higher aircraft fuel expenses and operating expenses.
Its revenue, however, rose 14.5% from RM982.4 million to RM1.12 billion, supported by a 23% growth in passenger volume.
The long haul low-cost carrier told Bursa Malaysia that its seat load factor was at 79% in Q3’17, which was 1 percentage point higher than the same period last year. Average fare was down by 1% at RM496 as compared to RM501 achieved in Q3’16.
Based on the current forward booking trend, AAX said forward loads and average fares are trending better than the previous year. However, the depreciation of the ringgit remains a key concern as a large portion of its borrowings and operating costs are denominated in US dollars.
Barring any unforeseen circumstances, the group expects its prospects to remain positive.
AAX’s nine-month net profit plunged 92.4% from RM191.53 million to RM14.47 million, while revenue grew 17.8% from RM2.84 billion to RM3.34 billion.
Its shares fell half a sen or 1.3% to close at 38 sen today on some 2.86 million done.