Fernandes claimed that AirAsia X was
KUALA LUMPUR: AirAsia X Bhd
expects operational cost per available seat-kilometre (CASK) excluding fuel to be lower in the coming quarters due to cost-saving initiatives.
In a note on Friday, PublicInvest research said the airline will look towards cutting costs via lower aircraft lease rates and ground-handling cost at some foreign stations.
"AAX targets to save on aircraft lease rates by c.USD19m per annum from March 2019 onwards.
"To-date, AAX has hedged about 51%-53% of fuel cost (i.e. Brent) at USD61-67/bbl for 2019," it added.
This comes on the back of AirAsia X's recent earnings announcement, which revealed a headline net loss of RM99.3mil in 4QFY18.
Excluding a forex gain of RM12.7mil, deferred tax charge of RM117.3mil, other one-off loss of RM14.1mil and impairment on amount due from IAAX of RM24mil, the group would have reported a core net profit of RM43mil for 4QFY18.
PublicInvest said the group's core net loss of RM57mil for FY18 was slightly below its loss estimates of RM63mil but above consensus loss estimates of RM49mil.
The research house maintained its neutral call on AirAsia X with a target price of 23 sen, based on 10x FY19 EPS.
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