AirAsia X Takes Flight with Impressive Q3 2024 Results
AirAsia X Berhad (AirAsia X) announced its unaudited financial results for the third quarter of 2024 (3Q24), ending September 30th, 2024, revealing a remarkable performance amidst a challenging economic climate. The low-cost long-haul carrier reported a significant 23% year-on-year (YoY) surge in revenue, reaching RM795.0 million compared to RM648.4 million in the same period of 2023 (3Q23). This impressive growth underscores AirAsia X’s strategic success in navigating the post-pandemic aviation landscape.
Key Drivers of Growth: Passenger Numbers and Ancillary Revenue
This substantial revenue increase was primarily fueled by a remarkable 34% YoY jump in passenger numbers, with 1,084,049 passengers carried in 3Q24. This robust passenger growth, combined with a strong Passenger Load Factor (PLF) of 84% (a 4 percentage point increase compared to 3Q23), contributed significantly to the company’s financial success. The airline cleverly capitalized on this demand by expanding its seat capacity by 27% YoY, reaching over 1.28 million seats, facilitated by an expanded fleet of 16 operational aircraft (up from 14 in 3Q23).
Furthermore, AirAsia X demonstrated its proficiency in generating ancillary revenue, which saw a nearly 40% YoY increase, reaching RM267.5 million. The average ancillary revenue per passenger also rose by 4% YoY to RM247, showcasing the effectiveness of the company’s ancillary revenue strategies. The average base fare for the quarter was RM443, influenced by strategic promotional campaigns associated with the launch of new routes to Changsha and Chongqing, demonstrating a balanced approach to growth and market penetration.
Navigating Rising Costs and Maintaining Profitability
Despite facing increased operational costs, reflected in a Cost per Available Seat Kilometre (CASK) of 13.98 sen/US¢3.14 (with CASK ex-fuel at a competitive 6.57 sen/US¢1.48), AirAsia X achieved a net operating profit close to RM3.0 million. This is even more remarkable considering that the EBITDA normalized to RM76.2 million (down from RM132.1 million in 3Q23, which included the reversal of certain provisions). Ultimately, a favorable foreign exchange gain contributed to an impressive net profit of RM121.6 million for the quarter.
AirAsia X Thailand’s Success and Future Acquisitions
AirAsia X’s associate company, AirAsia X Thailand (TAAX), also contributed to the overall success, reporting a 5% YoY revenue increase to RM300.7 million. TAAX carried 342,533 passengers with a PLF of 80%, achieving an average fare of RM613 and strong ancillary revenue per passenger of RM132, resulting in a net profit of RM55.0 million for the quarter.
Looking ahead, AirAsia X continues to strategically position itself for future growth. On October 16th, 2024, the company secured shareholder approval for the acquisition of Capital A’s aviation business, currently progressing with the necessary steps, including a private placement, to finalize the acquisition. Further updates will be announced upon receiving the required approvals. This acquisition promises further expansion and consolidation of the company’s market presence.
In conclusion, AirAsia X’s Q3 2024 results paint a picture of resilience, strategic growth, and profitability in a dynamic aviation market. The company’s focus on passenger experience, efficient cost management, and strategic ancillary revenue generation has positioned it for continued success in the years to come. The planned acquisition further solidifies its position as a major player in the long-haul low-cost carrier market.
