Its first quarterly profit posted since 2019, it compares to a hefty net loss of RM652.5 million in the preceding quarter.
The improving outlook and pent-up demand for medium haul air travel has prompted AAX to reactivate more aircraft to service, bring back furloughed staff early next year and recruit new flight crews, the airline said.
For Q5, AAX posted earnings before interest, taxes, depreciation, and amortisation (Ebitda) of RM25.4 million while profit before tax for the period stood at RM23.8 million.
AirAsia X Malaysia CEO Benyamin Ismail said AAX is now “well on track in its recovery path” even as the airline is compelled to operate in a challenging operational environment dictated by high fuel prices and a weakened ringgit against the US dollar.
“While we are cautious of the strenuous operating conditions, we remain confident that the recovery of the company is on the horizon, if not already within our reach,” he added.
Revenue for the quarter was slightly lower at RM100.1 million compared to RM107.2 million for the period ending June 30 (Q4 2022) on the back of a reduction in revenue from the freight services segment due to normalised scheduled flights operations.
It had a cash balance of RM79.5 million for the period ending Sept 30, an increase of beyond 100% compared to RM25.1 million in the preceding quarter. This was achieved predominantly on the back of a V-shaped air travel revival supporting the resumption of scheduled passenger flights to many of its profitable destinations, along with charter and cargo flights.
In other segments, recovery across all key metrics significantly improved as scheduled passenger and charter flights as well as ancillary revenues demonstrated a strong recovery compared to the preceding quarter.
The airline reported that passenger load factor (PLF) was recorded at a commendable 73% during the quarter – less than 10% short of its pre-Covid-19 PLF of 81% in 2019.
The company carried a total of 80,385 passengers during the period under review as compared to 8,892 passengers during the period from April-June 2022.
Seat capacity grew to 110,615 during the quarter from 27,521 in the preceding quarter as additional markets and frequencies were introduced in Q5.
The group recently announced a change of its financial year end from June 30 to Dec 31. As such, the financial year ending Dec 31, 2022 now covers a period of 18 months or six financial quarters.
Benyamin said AAX is back, stronger than ever following the most challenging period in commercial aviation history.
“We look forward to welcoming everyone back onboard with us as we rise up to meet the strong pent-up demand for medium haul air travel across Asia.”
He said the airline has resumed scheduled passenger flights to Seoul, Delhi and Sydney while due to high demand, it had also commenced operations to dense, short-haul routes during the quarter where demand has exceeded currently available aircraft capacity; namely Kota Kinabalu and Kuching.
In Q5, the total number of sectors flown increased to 291 sectors from 226 sectors in Q4. Currently, AAX operates a fleet of six Airbus A330s from a fleet of nine A330 aircraft as two A330 aircraft were returned during the quarter under review.
The airline expects to increase its operating fleet to 13 A330 aircraft by the first half of 2023 to meet strong consumer demand.
At 4.15pm, AAX’s share price had risen 2.5 sen or 6.33% to 42 sen.