AirAsia X has announced impressive financial results for the second quarter of 2024, marking its eighth consecutive profitable quarter. The airline achieved a net profit of RM4.8 million despite facing the traditionally weaker period and operating with fewer aircraft than its full fleet of 18.
Revenue for the quarter increased significantly by 30% year-on-year, reaching RM669.1 million. This substantial growth was driven by a 42% rise in passenger numbers compared to the previous year. The surge in passenger traffic also contributed to a stronger performance in ancillary revenue, highlighting the airline’s effective revenue management strategies and diversified income streams.
The passenger load factor saw a notable improvement, rising by seven percentage points to 83%. This increase was bolstered by the spring travel season and the Eid holidays, which spurred higher travel demand in key markets. The airline’s ability to capitalize on these peak travel periods demonstrates its strategic scheduling and market responsiveness.
AirAsia X maintained its position as a leader in cost efficiency, reporting the lowest unit cost among its peer airlines at 13.90 sen/US¢2.94. The ex-fuel unit cost remained impressive at 5.85 sen/US¢1.24, underscoring the airline’s effective cost management practices and operational efficiency. These figures reflect the airline’s continued focus on optimizing its cost structure while maintaining competitive pricing.
Ancillary revenue per passenger remained robust at RM248, marking a 5% increase year-on-year. This growth in ancillary revenue was supported by the strong performance of the FlyThru service, which saw a 22% uptake. The success of FlyThru, along with other ancillary services, highlights the benefits of AirAsia X’s collaborative efforts within the broader AirAsia group.
In addition to its strong operational performance, AirAsia X’s subsidiary, TAAX, delivered an impressive net profit of over RM11 million. This was driven by a higher average passenger fare of RM727, reflecting the airline’s ability to command premium pricing in a competitive market.
The airline is also advancing in its corporate restructuring efforts. AirAsia X has submitted a draft circular to Bursa Malaysia for review, marking a significant step in its planned fundraising process of up to RM1 billion. An extraordinary general meeting (EGM) is expected to be convened within 21 days of approval, paving the way for the next phase of the airline’s financial strategy.
Operational excellence was further evidenced by AirAsia X’s on-time performance, which led among local airlines with a remarkable punctuality rate of over 91% in June 2024. This achievement underscores the airline’s commitment to reliability and customer satisfaction, contributing to its overall strong performance in the quarter.
Overall, AirAsia X’s second-quarter results reflect a robust financial position and operational efficiency, positioning the airline well for continued success in a challenging and evolving aviation landscape. The combination of strong revenue growth, effective cost management, and strategic initiatives highlights the airline’s resilience and strategic foresight in navigating the post-pandemic recovery phase.
