AirAsia X posts wider Q2 net loss of RM207m


  • Airlines
  • Thursday, 22 Aug 2019

Announcing a wider net loss of RM207.11mil on Thursday compared with the RM57.45mil net loss a year ago, AAX attributed it also to the weakening of the ringgit against the US dollar.



KUALA LUMPUR: AIRASIA X posted a weaker set of financial results in the second quarter ended June 30, 2019 as it was impacted by the loss of disposal of three aircraft under the share and lease back during the quarter amounting to RM72.50mil.

Announcing a wider net loss of RM207.11mil on Thursday compared with the RM57.45mil net loss a year ago, AAX attributed it also to the weakening of the ringgit against the US dollar.

Its revenue fell to RM1.01bil from RM1.06bil. It said the operating loss in Q2 was RM185mil versus loss of RM99.20mil a year ago. Loss per share was five sen compared with 1.4 sen.

“On a normalised basis, after adjusting for the disposal of three aircraft and the effects of MFRS16, the company posted a loss before taxation (PBT) of RM77mil against last year’s loss of RM64.8mil,” it said in a statement.

“Net loss for the quarter however markedly reduced to RM32mil, as compared to a net loss of RM57.5mil in Q2 FY18. The net loss for Q2, FY19 has room for further improvement as AirAsia X Indonesia’s two aircraft began its wet lease in July 2019,” it said.

On a quarterly basis, it said the loss before tax of RM269.30mil compared with profit before tax of RM59.50mil in Q1 FY19 was mainly due to the unrealised foreign exchange loss. Also weighing n the financial performance was the loss of disposal of the three aircraft amounting to RM72.5mil.

In the first half, it registered net losses of RM163.78mil compared with net losses of RM15.96mil in the previous corresponding period. Its revenue fell by 6.3% to RM2.18bil from RM2.33bil.

When compared with the Q1 where there was a profit before tax of RM59.5mil, AAX said this was mainly due to the unrealised forex loss as the ringgit weakened against the US$ at the end of the current quarter and losses from the disposal of the three aircraft.

“The company recognises the challenges posed by the weakening of the ringgit against the US dollars. The company will continue to drive revenue and sale of ancillary services to mitigate higher operational cost from the factors mentioned above.

“Demand and load factors are expected to remain at a reasonably healthy level. However, average base fare is under pressure due to the increase in capacity on core established routes, in addition to new routes,” it said in a statement to Bursa Malaysia.

AAX said during the Q2 FY19, it reported net cash generated from operating activities of RM268.8mil versus RM23.5mil a year ago.

AAX Malaysia posted revenue per available seat kilometre (RASK) of 12.03 sen, up by 2% on the back of an increase in average base fare (ABF) by 5% in Q2 FY19 to RM437 from last year’s RM418.

On capacity, available seat per km (ASK) capacity declined 6% on-year to 8,442 million and passenger load factor (PLF) remained fairly stable at 80% during the quarter.

“This can be attributed to seasonal capacity management and operation of shorter stage routes as compared to prior year.

“Furthermore, the termination of Auckland in February 2019 and the resultant capacity management on the Gold Coast route following the termination of Auckland, on top of a general slowdown in the tourism sector, particularly from China and South Korean markets coupled with the addition of two aircraft on-year, caused the company’s average utilisation to decline to 14.3 hours on-year from previous year’s 16 hours.

“Due to the foregoing in Q2 FY19, AAX Malaysia carried a total of 1,455,052 passengers, 7% lower on-year.

However, in H2, it also foresees operational environment to remain challenging against global economy backdrop and pressure on the ringgit.

Of concern was the implementation of the departure levy from Sept 1 which may potentially impact the demand for air travel especially when the third quarter is usually the leaner quarter for mid-to-long haul segment.

“Going forward the company expects utilisation to ramp up and passengers carried to increase as focus shifts towards optimising network and driving up utilisation on core routes leading up to the third and seasonally stronger fourth quarter 2019,” it said.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 7
Cxense type: free
User access status: 3
   

Across The Star Online


Air Pollutant Index

Highest API Readings

    Select State and Location to view the latest API reading

    Source: Department of Environment, Malaysia