KUALA LUMPUR: AirAsia X
, the long-haul low-cost carrier, saw its share price fall to a record low of 65 sen on Wednesday after it sank deeper into the red with net losses of RM210.95mil in the third quarter ended Sept 30, 2014.
At 4.23pm, it was down 4.5 sen to 65.5 sen. There were 48.98 million shares done at prices ranging from 65 sen to 71.5 sen.
At the midday break, AirAsia X announced the losses were a stark contrast to the net profit of RM26.44mil a year ago as it was impacted by higher operating expenses which surged 43.1%.
Revenue rose 16.2% to RM698.76mil from RM601.49mil a year ago. Loss per share 8.9 sen compared with earnings per share of 1.1 sen.
Elaborating on the results, AirAsia X said operating expenses increased by RM253.7mil or 43.1% to RM842.5mil due to higher staff costs, higher aircraft fuel expenses, while maintenance, overhaul, user charges and other related expenses surged.
“During the current financial period, there was an increase in number of headcount which has resulted staff costs increased 40.8% to RM81.4mil in the nine months ended Sept 30, 2014 from RM57.8mil in the previous corresponding period,” it said.
AirAsia X said aircraft fuel costs increased by RM77.4mil or 26.6% to RM368.5mil in Q3, 2014 from RM291.1mil a year ago primarily due an increase in fuel consumption, which resulted from an increase in flight frequencies on existing routes and newly launched routes.
Maintenance, overhaul, user charges and other related expenses increased by 69.1% to RM195.2mil in Q3, 2014 from RM115.4mil. It also recognised a lower net tax allowance of RM13.6mil as compared to RM46.3mil a year ago.
When compared with the second quarter ended June 30, 2014, its loss before tax increased by RM92.1mil from RM132.4mi to RM224.5mil due to seasonally lower demand for air travel in the third quarter of the year and higher unrealised foreign exchange loss from strengthening of the US dollar against the ringgit.
For the nine-months period, it posted net losses of RM350.92mil compared with net profit of RM44.33mil in the previous corresponding period. Its revenue rose to RM2.119bil from RM1.627bil.
AirAsia X said operating expenses increased 54.6% from RM1.575bil a year ago to RM2.435bil mainly due to higher staff costs, which rose 40.4% to RM225.8mill from RM160.8mil a year ago.
“As for aircraft fuel expenses, fuel costs increased by 54.9% to RM1.160bil from RM748.9mil due primarily to increase in fuel consumed from the increase in sectors flown,” it added.
Maintenance, overhaul, user charges and other related expenses increased by 59.8% to RM497.5mil from RM311.4mil mainly from the higher maintenance and service costs for the new aircraft delivered and new charter flights rendered during the 9 months ended 30 September 2014.