AirAsia X (AAX) has yet to profit since the pandemic. And it has been challenging for airlines to generate profits, some of which have suffered losses. In contrast, others have made profits in the last two quarters, such as United Airlines. Only this year, AirAsia X made its first profit in three years.
AirAsia X net Profit
The airline is crushing six quarters out of its financial year that ends on December 31st, 2022. The AirAsia Aviation Group subsidiary recorded its first net profit in the fifth quarter of 2019.
For the three months ending September 30th (Q5), AAX earned revenue of RM100.1 million ($22.02 million) and a net profit of RM25.1 million ($5.52 million), compared to RM107.2 million ($23.58 million) and a net loss of RM652.5 million ($143.55 million) in the previous quarter. The minor drop in earnings came from a decline in freight revenue.
AirAsia X has benefited from lifting restrictions in the Asia-Pacific and the return of almost complete flight operations. It is approaching the pre-pandemic level of 81%. In the fifth quarter, the airline carried 80,385 passengers, a dramatic increase from the 8,892 passengers carried between April and June. The airline sold 27,521 tickets compared to 110,615 in the fifth quarter, thanks to new destinations. It will also resume its flight to Jeddah.
Benyamin Ismail, CEO of AAX Malaysia, said, “While we are cautious of the strenuous operating conditions, we remain confident that the company’s recovery is on the horizon, if not already within our reach. Beginning of Q5, AAX was charting three flights per week, which surged to 23 flights per week by the end of the period under review.”
Air Asia Family Group
Air Asia is a Malaysian low-cost carrier. The carrier has subsidiaries: AirAsia, Thai AirAsia, Indonesia AirAsia, Philippines AirAsia, AirAsia X, Malaysia AirAsia, and Thai AirAsia X.
AirAsia X was established in 2001 with hubs in Kuala Lumpur, Kota Kinabalu, Penan, Johor Bahru, and Kuching. According to the airline, it operates a fleet of six Airbus A330s of its nine aircraft, with two A330s returning during the quarter. It plans to increase the fleet to 13 A330s by next year to meet growing demand and network expansion.
AAX is the first long-haul, low-fare carrier to introduce premium flatbed seats. With the premium seat, you can have complimentary products, priority check-in, priority boarding, priority baggage, 40kg baggage allowance, complimentary meal, and the utilization of a duvet and pillow.
According to the AAX statement, they will be the first Malaysian airline to reconnect flights from Kuala Lumpur to Busan, South Korea, in 2023. AirAsia has signed an agreement with the Busan Tourism Organization (BTO) to promote both countries, with the support of travel agencies, to improve flight connectivity through tourism. Kuala Lumpur to Busan will be a tri-weekly flight, which will be AAX’s second route to South Korea after the flights to Seoul. Air Asia has made a similar collaboration with Penang Global Tourism.
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