AirAsia X Q1 pre-tax profit at RM218m

Kuala Lumpur: AirAsia X Bhd recorded a pre-tax profit of RM218.52 million for the first quarter ended March 31, 2016 (Q1 2016) compared with a pre-tax loss of RM117.28 million a year ago.Revenue jumped to RM970.67 million from RM775.37 million, mainly due to the increase in passenger traffic and growth in average base fare.

Group Chief Executive Officer Datuk Kamarudin Meranun said the low-cost airline had embarked on various turnaround initiatives to strengthen its foundation by addressing cash liquidity, instituting a more disciplined cost structure and using consolidated network to earnings growth.

"These initiatives have resulted in improvements in our core operations.

"In the first quarter of 2016, the China market contributed the highest growth to Malaysia AirAsia X operations.

SPONSORED CONTENT

Sabah revenue hits RM6.97 billion: Hajiji says GRS State Government may see full term

Kota Kinabalu: The Sabah Government continued its momentum in managing the economy in line with the commitment and spirit of the Sabah Maju Jaya (SMJ) when it posted record high state revenue of RM6.973 billion last year.

Revenue from China increased 49 per cent year-on-year (YoY) due to higher passenger traffic while average base fare improved 54 per cent YoY," he said in a statement.

He said the airline projected this positive trend to carry through this year with the implementation of the visa waiver for Chinese tourists visiting Malaysia, and it expected the strong inbound traffic from China to feed into other core markets.

Thai AirAsia X also recorded high load factor of 88 per cent for the Bangkok-Shanghai route and it has recently added Bangkok-Shenyang route to its growing network in April.

AirAsia X intends to fortify its presence in China with more new routes from Malaysia and Thailand this year.

Meanwhile, AirAsia X Chief Executive Officer Benyamin Ismail said moving forward the group remained focus on exploring strategic initiatives to sustain its earnings momentum for sustainable growth in Malaysia and Thailand while re-evaluating its operations in Indonesia.

The industry's challenging environment is expected to persist with currency volatility, regulatory uncertainty and other external headwinds.

"We have hedged 100 per cent of the company's fuel requirement for the remaining quarters of 2016 at an average jet fuel price of US$54 per barrel on planned existing routes.

Stay up-to-date by following Daily Express’s Telegram channel.

Daily Express Malaysia

"This will effectively allow us to mitigate fuel cost volatility and better manage cost while we venture into new routes," he said.

In Q1 2016, the company's fuel expenses reduced by 11 per cent due to lower fuel prices, which helped to reduce cost per available seat kilometre by eight per cent YoY. – Bernama

Try 1 month for RM 18.00

Try 1 month for RM 18.00

Try 1 month for RM 18.00