Air Asia X Berhad, pax up by 23% in Q3 2017
AirAsia X Berhad reported its financial results for the third quarter ended on September 30, 2017.
The company revealed third quarter 2017 revenue growth by 14% year-on-year. The revenue growth was mainly driven by a 22% growth in scheduled flight revenue and 29% growth in ancillary revenue, the company stated in an official press release.
During the third quarter, passenger traffic was up by 23% year-on-year exceeding available seat per kilometer capacity growth of 18% year-on-year. This allowed growing of load factor by 1 percentage point to 79%.
Revenue per available seat kilometer was down by 3% year-on-year due to increased capacity on existing routes and promo fares offered to stimulate new routes. The company’s cost, measured in terms of cost per available seat kilometer, was up by 6% year-on-year.
AirAsia X Group CEO Datuk Kamarudin Meranun said in an official statement that “despite the tougher operating environment in the seasonally weaker third quarter of the year, we managed to serve more passengers and posted higher load factor across all markets we operate in. Although the one-off provision of doubtful debt recorded in Q3 2017 has put a short-term pressure on earnings performance, the longer-term story is still very compelling.”
According to AirAsia X Group CEO, AirAsia X Thailand’s financial performance weakened in the third quarter mainly due to lower other income and higher marketing expenses. Average fare remained stable despite considerable competition from international competitors. Passengers carried grew 15% year-on-year, despite a relatively unchanged ASK capacity.
“Even though operating conditions in Thailand were less than favorable, we believe this is just a temporary blip as we expect Thailand operations to recover in the coming quarter as we enter the peak year-end traveling season,” Datuk Kamarudin Meranun said.
AirAsia X Indonesia posted a profit of $2.15 million in Q3 2017, on the back of strong revenue performance especially from its Denpasar-Narita and Denpasar-Kuala Lumpur routes. Load factor and average fare performance have shown positive growth throughout Q3 2017, despite weaker performance recorded in September 2017, amid Mount Agung volcanic activity and travel warnings.
“We continue to monitor and be cautious on the volcanic activity as we head into peak traveling season of Q4 2017, the company stated. “As mentioned in the previous quarters, the management foresees continuous overall improvement from Indonesia as we leverage better operational synergies with AirAsia Group.”
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