AirAsia X: Financial performance recovering, to exit PN17 status

AirAsia X Bhd’s (AAX) net profit for the third quarter ended Sept 30, 2023, fell to RM5.56 million from RM25.09 million registered in the corresponding period last year.

However, revenue for the period under review soared to RM648.36 million from RM100.10 million a year ago, the long-haul low-cost airline said in a filing with Bursa Malaysia today.

It noted that the company commenced operations during the quarter that ended June 30, 2022, after two years of suspension of scheduled flights, and the majority of the aircraft fleet remained grounded during the quarter ended Sept 30, 2022.

“As such, the performance indicators comparison quarter for the quarter is not meaningful. The tabular presentation of revenue and cost metrics in the quarter, therefore, will be presented without comparison to the last quarter as there is no like-to-like comparison to the same quarter as Sept 30, 2023,” said AAX.

It also said that the period under review has traditionally recorded relatively lower sales due to the seasonality of international sectors.

Yet, the group had achieved an over 53 per cent recovery against the same period pre-COVID-19, said AAX.

In line with the reactivation of aircraft this quarter to 14 operational aircraft, staff costs and maintenance costs had increased.

By the end of September 2023, the number of pilots and cabin crew had increased by 40 per cent and 131 per cent, respectively, while maintenance costs increased in tandem with higher utilisation of aircraft and further driven by the weakening of the ringgit against the greenback.

On the outlook, AAX said the group maintained its momentum in fleet recovery, of which the group currently operates 14 out of 17 aircraft and expects to add one aircraft to its fleet, bringing its total fleet size to 18 aircraft.

“By December 2023, we expect at least 16 aircraft to be operational. The group continues its course in relaunching its key profitable routes and maintains its focus on the potentials in China as the country’s international travel traffic recovers,” it added.

In a separate filing, AAX announced that Bursa Malaysia has approved its application to be uplifted from its Practice Note 17 (PN17) status.

“Bursa Securities, vide its letter dated Nov 21, 2023, after taking into consideration the relevant facts and circumstances, including, among others, the company no longer triggers any prescribed criteria under PN17, the company has complied with the criteria for waiver and upliftment from being classified as a PN17 company.

“Apart from that, the quarterly report for the financial period ended Sept 30, 2023, which is due by Nov 30, 2023, resolved to allow the appeal subject to AAX announcing a profit after taxation attributable to the equity holders of AAX in the quarterly results,” it said.

The upliftment of AAX from being classified as a PN17 company will come into effect tomorrow (Nov 22). — BERNAMA