Analysts see solid Q1 results from AirAsia Group

KUALA LUMPUR: Analysts expect AirAsia Bhd and AirAsia X Bhd to perform well financially in the first quarter following passenger growth that exceeded additional capacity.

Statistics suggested that the group will deliver a positive financial performance in the first quarter of this year, Maybank Investment Bank Bhd aviation analyst Mohshin Aziz told NST Business yesterday.

While jet fuel price is higher on a year-on-year basis, it is still at a level that is not burdensome to the industry, he said.

In the first quarter of this year, AirAsia Group recorded a load factor of 89 per cent, up three per cent from the same period last year.

The number of passengers carried increased 13 per cent yearon-year to 15.23 million, well ahead of the nine per cent increase in seat capacity.

AirAsia Bhd achieved a load factor of 90 per cent during the quarter, up five per cent while Thai AirAsia was up one per cent to 90 per cent, Indonesia AirAsia was up three per cent to 82 per cent, Philippines AirAsia was up five per cent to 92 per cent and AirAsia India was up three per cent to 89 per cent.

Hong Leong Investment Bank analyst Daniel Wong said the strong growth may indicate a turnaround for the group’s lossmaking Philippine arm, which in the third quarter last year cut its net loss.

He said the turnaround will be fuelled by the strong growth recorded in its load factor.

In a filing in November, AirAsia said its Philippine unit trimmed its net loss by 12 per cent to 1.2 billion pesos (RM275 million) in the third quarter from 1.36 billion pesos in the same period last year.

In the first quarter of last year, AirAsia Bhd’s net profit surged to RM877.79 million from RM149.33 million due to improved revenue and reduction in the average fuel price.

Its revenue in the same quarter increased 31 per cent to RM1.69 billion from RM1.29 billion supported by a 17 per cent growth in passenger volume.

In the same quarter, AirAsia X recorded a net profit of RM179.49 million from a net loss of RM125.92 million.

Its revenue increased 25.2 per cent to RM970.67 million from RM775.37 million. Farah Adilla