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Malaysia : AirAsia X Continues Strategic Expansion with 38.5% Revenue Growth to RM1.4 billion In the First 6 Months of 2014

August 22, 2014



AirAsia X Berhad, the long-haul low-cost airline affiliate of the AirAsia Group today reported its financial results for the Second Quarter ( 2Q14 ) and the First Half-Year ( 1H14 ) ended 30 June 2014.

On the back of its strategy of capacity and network expansion to strengthen its market leadership, the Company recorded revenue of RM671.6 million for 2Q14, a year-on-year ( y-o-y ) growth of 36.7%, and cumulative revenue of RM1.42 billion in 1H14, a 38.5% y-o-y growth compared to the previous corresponding period.

This increase was underpinned by the significant growth in Available-Seat-Kilometre ( ASK ) capacity that was introduced in the second-half of 2013, recording a y-o-y growth of 47% to 6.26 billion in 2Q14 and a y-o-y growth of 53% to 12.48 billion in 1H14. Passenger traffic volume in Revenue-Passenger-Kilometre ( RPK ) grew by 44% in 2Q14 to 5.04 billion and by 53.3% to 10.38 billion in 1H14, resulting in a passenger load factor of 80.4% in 2Q14 and 83.1% in 1H14. Consistently delivering load factor performance above 80% demonstrates the ability to keep stimulating new travel and tourism demand to fill up the new capacity added. This solidifies AAX s position as the market leader in passengers carried to its core markets in Australia and North Asia, as well as its position as the global market leader in the long-haul LCC space.

The capacity expansion into new cities in its core markets, such as Nagoya, Xian, and Chongqing, as well as additional frequencies to cities such as Sydney, Melbourne, Taipei, Seoul, and Tokyo have increased its Fly-Thru connectivity and attracted new passenger traffic flow that now uses KLIA2 as a regional aviation hub. Notably, the Company has approximately tripled its market share of passengers travelling between North Asia and Australia on a one-stop service, generating a significant new customer base this year compared to the previous year.

The Company continues to operate a higher number of flights for charters and wet-leases, with total revenues from this segment growing from RM33.0 million in 1H13 to RM148.6 million in 1H14. These flights are not captured in the ASK and RPK tabulations as they are unscheduled flights. Ancillary revenue grew by 48.2% y-o-y to RM290.8 million in 1H14, compared to RM196.3 million in the previous period, resulting in an ancillary revenue per passenger of RM138.50 from the 2.1 million passengers carried. Cargo segment contributed RM59.3 million for 1H14, and increase of 43.8% y-o-y from the previous corresponding period. Two A330-300 aircraft were leased to Thai AirAsia X ( TAAX ), its affiliate, generating RM25.3 million in lease income revenue in 1H14. TAAX commenced daily flights to Seoul since 17 June 2014 and will operate flights to Tokyo-Narita and Osaka from its hub in Bangkok from September 2014.


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Source: TendersInfo (India)


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