Airasia X to launch more routes this year, eyes China tourists

CIMB Research reduced its target price for AirAsia X from 17 sen to 15 sen

KUALA LUMPUR: AirAsia X will launch more routes this year as it eyes the growth in tourists from China.

Its CEO Benjamin Ismail did not disclose its plans but said that it was safe to add capacity now.

"We are looking at second tier cities in China. One city can have a few million people. And others such as Hawaii we are waiting for approvals from the relevant authorities," he said on Wednesday.

CIMB Equities Research has raised the target price for AirAsia X after upgrading the earnings per share, which is still based on one time price-to-book value (P/VBV).

It said on Wednesday AAX delivered its best quarterly performance in its history, with a strong 1Q16 core net profit outperforming its expectations of a full-year net loss.

“This was on the back of stronger-than-expected passenger traffic and robust yield recovery, requiring us to lift our forecasts from losses to slightly over breakeven,” it said.