AirAsia X swings to fourth quarter operating loss | New
AirAsia X posted an operating loss in its fourth financial quarter as it warns of headwinds such as high fuel prices amid returning travel demand.
In the three months to June 30, the low-cost long-haul operator was in the red by MYR 691 million ($154 million), reversing the operating profit it had recorded in the previous quarter, where its profits had been boosted by a restructuring-related recovery.
Revenue for the quarter was MYR 107 million, the bulk of which – at MYR 96.8 million – came from freight services.
Due to a fiscal year change, the carrier did not provide figures for the previous corresponding period in 2021.
However, in its earnings statement for the three months to June 30, 2021, AirAsia X was deeper in the red, posting an operating loss of MYR 24.5 billion. Revenue for this quarter was MYR 72 million.
The Malaysia-based airline’s cash burn continues in the quarter, where it ended the period with MYR 22 million. This is significantly lower than the MYR 68 million it started the quarter with.
Regarding subsidiaries, Thai AirAsia X – itself undergoing restructuring – was in the red by MYR 41.5 million, while Indonesia AirAsia X, which suspended operations, recorded a loss of MYR 1.5 million. million MYR.
AirAsia X is in the process of restarting passenger operations after being grounded during the pandemic. The carrier previously told FlightGlobal it intended to restart one-stop operations in London around Christmas, after a hiatus of more than a decade. Other cities include Istanbul, Dubai and Jeddah.
“Planned routes have been taken into account on routes with high load and freight demand, which will contribute positively to financial growth [performance] company,” says AirAsia X.
He warns of the challenges of the current operating environment, including high fuel prices, the weakening of the Malaysian ringgit against the US dollar, as well as the slower-than-expected reopening of key North Asian markets like China. and Japan.