AAX posts wider quarterly loss to RM197mil

PETALING JAYA: AirAsia X Bhd (AAX) saw its net loss in the third quarter ended Sept 30 increasing by almost five times due to a rise in the average fuel price and an impairment of RM138.2mil made on an amount due from a joint venture.

The long-haul budget airline said in a filing wit Bursa Malaysia that its net loss in the third quarter of financial year 2018 (3Q18) jumped to RM197.47mil from a net loss of RM43.3mil a year earlier.

AAX said that the average fuel price in 3Q18 had increased to US$91 per barrel compared with US$65 in 3Q17.

Meanwhile, the impairment made in the third quarter was related to a lease rental and maintenance reserve due from a JV through a third-party leasing intermediary.

The company’s revenue in the quarter fell 4.18% year-on-year (y-o-y) to RM1.08bil.

“The increase in the load factor from 79% in 3Q17 to 80% in 3Q18 was mitigated by the reduction in the average passenger fare,” AAX said in the filing.

AAX did not declare any dividend for the quarter. Loss per share was at 4.8 sen.

In the first nine months of financial year 2018, the budget carrier posted a net loss of RM213.43mil.

In comparison, the airline had recorded an earnings of RM14.47mil in the same period of the previous financial year.

This was due to higher aircraft fuel expenses and other operating expenses.

Revenue in the nine-month period was up 1.64% y-o-y to RM3.4bil.

AAX expected bookings in the coming months to be stronger y-o-y. However, headwinds could continue to persist in the form of cost pressures arising from significantly elevated fuel prices compared with a year ago, as well as keen competition in key operating markets.

The airline said demand in the short-term was expected to remain healthy amid concerns on global trade tensions.

“To better serve the growing demand in the Asia-Pacific region, AAX Malaysia plans to increase its fleet size by two aircraft through operating leases. One of the two leased aircraft was delivered in October.

“AAX Thailand is expecting two additional aircraft by end-2018,” it said.

Higher expenses: AAX says the average fuel price in the third quarter has increased to US$91 per barrel compared with US$65 during the same period last year.