PETALING JAYA: AirAsia X Bhd (AAX) has recorded a net loss of RM207.11mil in its second quarter to end-June of financial year 2019 (2Q19).
In comparison, it made a net loss of RM57.46mil in 2Q18.
The long-haul, low-cost carrier fell into the red in the April-June 2019 period, after briefly turning profitable in the first quarter of this year. For context, AAX had been making losses for several quarters prior to 1Q19.
The wider net loss in the second quarter was mainly attributable to the loss of disposal of three aircraft under sale and leaseback during the current quarter and the weaker ringgit against the US dollar.
AAX’s revenue also dipped in the quarter as it dropped by RM47.28mil or 4.46% year-on-year (y-o-y) to RM1.01bil.
It is worth noting that the topline fell for the fifth consecutive quarter if compared on a y-o-y basis.
AAX said in a Bursa Malaysia filing that its average base fare was under pressure due to the increase in capacity on core established routes, in addition to new routes.
The carrier’s loss per share increased to five sen in 2Q19 as compared to only 1.4 sen in 2Q18. A dividend was not announced for the quarter under review.
Cumulatively, for the first-half of financial year 2019, AAX’s net loss widened substantially to RM163.78mil as compared to RM15.96mil in the same period last year. Revenue, meanwhile, fell 6.45% y-o-y to RM2.18bil in the six-month period.
Moving forward, AAX told the stock exchange that it would continue to drive revenue and sale of ancillary services to mitigate higher operational cost.
Demand and load factors are expected to remain at a reasonably healthy level.
“Going into the second-half of 2019, the company foresees the operational environment to remain challenging against the backdrop of the global economy and the pressure on the ringgit.
“The board is also concerned about the implementation of the departure levy with effect from Sept 1, which may potentially impact the demand for air travel, especially when the third quarter is usually the leaner quarter for the mid to long-haul segment.
“The company, however, expects 4Q19 to remain reasonably healthy, as the management continues to push for efforts to mitigate cost pressures and remains committed to ensuring sustainable growth amid these challenging circumstances, ” stated AAX.