AirAsia targets 3Q load factor of 83%

by TMR

AIRASIA Group Bhd has targeted to achieve an average load factor (ALF) of 83% in the third quarter ending Sept 30, 2018 (3Q18) on the back of existing forward booking trend of Malaysia AirAsia, Indonesia AirAsia and Philippines AirAsia.

The company, in an exchange filing last Thursday, noted its load factor in the 2Q18, was recorded at 86% on the back of capacity increase.

It added that the main obstacles the company is facing are high fuel costs and weakening regional currencies, though it plans to continue driving revenue and sale of ancillary services, while focusing on reducing costs to mitigate the operational challenges.

For its 2Q18, the low-cost carrier’s net profit rose 146% year-on-year (YoY) to RM361.81 million driven by the reversal of deferred tax on the sale of aircraft.

Total group revenue gained 10% YoY to RM2.62 billion, due to a 13% increase in total passengers carried. — TMR