CIMB Research: AirAsia X still in investment stage

KUALA LUMPUR: CIMB Equities Research says excess capacity introduced to Australia by AirAsia X (AAX) and Malaysia Airlines (MAS) in late 2013 suggests that yield conditions will remain tough in 1Q14, even though 1Q14 RASK may improve from 4Q13 levels.

“Its venture into GDS/OTA Ctrip.com systems will probably have a stronger positive impact on loads only in FY15, not FY14. AAX is still in the investment stage and financial investors have to be patient,” it said on Tuesday.