Saturday, March 2, 2024
AirAsia X Berhad (“AirAsia X” or the “Company”) is delighted to announce its financial outcomes for the Fourth Quarter of 2023 (“4Q23”) and the entire Financial Year of 2023 (“FY23”), concluding on 31 December 2023.
In 4Q23, the Company achieved a revenue of RM818.2 million, marking a remarkable increase of over 2.4 times compared to the previous year, showcasing its strongest performance post-pandemic. This recovery represents an 80% rebound compared to the same quarter in 2019, despite operating with just over 50% of the capacity available during the corresponding period. During this quarter, the Company served a total of 890,289 passengers, which is over 2.6 times higher year-on-year (YoY), corresponding to the YoY surge of 2.8 times in Available Seat Kilometre (“ASK”) Capacity to 4,770 million. This growth was facilitated by activating more aircraft and launching additional routes.
Benefiting from the year-end peak travel season, the Company achieved a robust Passenger Load Factor (“PLF”) of 82%, increasing by three percentage points YoY and surpassing the 2019 level of 81%. Notably, in 4Q23, the Company attained a net profit of RM27.4 million.
Throughout the review quarter, the Company recorded an average passenger fare of RM619, a decrease from the preceding year’s RM866, reflecting the market’s normalization of fare levels. Ancillary revenue per passenger increased by approximately 10% YoY to RM216 due to enhanced commercial initiatives and increased take-up rates. Additionally, AirAsia X expanded its routes, including a new route to Hong Kong (seven times per week) in December, and increased flight frequencies to Seoul (12 times per week), Sydney (11 times per week), Melbourne (12 times per week), and Bangkok (seven times per week) in 4Q23, totaling 144 flights per week by year-end compared to 72 flights in the previous year.
Regarding costs, the Company’s Cost per Available Seat Kilometres (“CASK”) was recorded at 15.71 sen, compared to 9.98 sen in the previous year. This increase was attributed to reversals of provisions undertaken in 2022, higher aircraft reactivation costs, elevated jet fuel prices, and a weaker Ringgit against the US Dollar. Nonetheless, the Company maintains the lowest unit cost among peer airlines, with Revenue per Available Seat Kilometres (“RASK”) remaining strong at 17.15 sen for the quarter.
For the full year, the Company reported revenue of RM2.5 billion and a net profit of RM366.5 million, driven by the recovery of its scheduled passenger flight operations segment and significant improvements in ancillary income. Passenger demand remained robust, with a total of 2.8 billion passengers carried compared to 417,195 passengers in 2022, achieving a sound PLF of 80%, up from 78% the previous year.
In terms of associate performance, AirAsia X Thailand (“TAAX”) recorded a turnover of RM469.5 million in 4Q23, a 79% increase YoY, reflecting approximately 93% recovery compared to the same period in 2019. TAAX posted a net profit of RM1.3 billion in this quarter, primarily due to the gain recognized from its rehabilitation efforts.
In the operational aspect, during 4Q23, TAAX experienced a notable increase in passenger volume, carrying a total of 387,217 passengers, marking a 72% rise year-on-year (YoY). This growth was supported by a robust Passenger Load Factor (PLF) of 86%, as the airline activated more aircraft to accommodate the strong demand. Regarding its network, TAAX reinstated services to Sapporo and concluded the quarter with 52 flights per week.
For the entire year, TAAX maintained a solid PLF of 83%, transporting over 1.3 million passengers in total. In 2023, TAAX expanded its operations to encompass six routes, serving core markets in Japan, South Korea, Australia, and China. The airline recorded a substantial revenue of RM1.5 billion, marking a YoY increase of over 47%, while its net profit reached RM2.1 billion.
As of December 31, 2023, AirAsia X’s total fleet comprised 18 A330s, with 16 aircraft activated and operational. Similarly, AirAsia X Thailand possessed a fleet of eight A330s, with seven aircraft activated and operational.
AirAsia X CEO Benyamin Ismail said, “After all we have endured during the
pandemic-enforced shutdown of all of our commercial operations, the Company has close to
90% of its full fleet operational, and now we expect the final two aircraft to re-join our
operations by the first half of the year. This quarter alone, two additional aircraft have been
activated for operations, bringing the total operational fleet to 16, which is well aligned to
maximise the upside the market has to offer in our core markets in the seasonally busiest travel
period. The future is looking bright with our forward aircraft orders bringing additional new
specification aircraft into our fleet which will truly revolutionise our model for medium to
longer-haul air travel.
“Over the past 12 months, the key performance metrics have been very encouraging, to achieve
close to pre-pandemic levels, even after the wave of pent-up demand has normalised. By the
end of December 2023, we have 22 destinations with 144 weekly flights, compared to 72 flights
compared to the year prior. By March 2024, we will have launched our maiden flight to
Kazakhstan, in Almaty, and we are excited for the opportunities that shall be unlocked with
opportunities for wider reach into the region, effectively contributing to the FlyThru connectivity.
“Ancillary revenue per passenger continues to hold strong at RM216 in 4Q23 via an enhanced
offering and dynamic pricing strategy, further optimised via our sales channel on airasia.com,
effectively elevating the user experience, and driving a higher take-up rate.
“On fleet and network outlook, with a number of new specification longer range, more efficient
aircraft on order across the AirAsia Aviation Group, including the A330neo and A321XLR, we are
exploring several new and exciting medium to longer haul destinations to fly to including to
Europe, Africa and the United States.”
Saturday, April 27, 2024
