AAX earnings up in Q1 on lower expenses

PETALING JAYA: Lower expenses helped lift AirAsia X Bhd’s (AAX) earnings despite lower revenue.

The long-haul budget carrier’s net profit improved 4.4% to RM43.3mil for the first quarter ended March 31, 2019, from RM41.5mil in the previous corresponding quarter. The group’s earnings per share were unchanged at one sen.

AAX’s revenue dipped 8.1% to RM1.17bil in the first quarter from RM1.27bil previously as a result of lower average base fare at RM513 in the first quarter, compared with RM527 in the same period a year ago.

In a filing with Bursa Malaysia, AAX noted the lower revenue was the main cause of the group posting a net operating loss of RM29.5mil in the first quarter, a reversal from a net operating profit of RM58.3mil in the same period a year ago.

For the quarter in review, AAX saw a decrease of 3% in cost per average seat kilometre (ASK) to 12.89 sen from 13.30 sen due to reduction in fuel price to US$79 per barrel from US$88 per barrel previously.

It registered lower passenger numbers at 1.51 million, compared with 1.59 million previously, while its load factor was relatively unchanged at 83% in the first quarter compared with 84% in the same quarter last year. Revenue per ASK was lower at 13.43 sen, compared with 13.96 sen previously.

Source: TheStar