AAX’s 2QFY18 operations may signal strong quarter
KUCHING: AirAsia X Bhd’s (AAX) strong second quarter of financial year 2018 ( 2QFY18) operational fronts might be an indication of another strong quarter for the group, analysts say.
As per AAX’s press release on the premliminary operating statistics for 2QFY18, the group’s available seat kilometres (ASK) amounted to 8.96 million, up six per cent from 8.45 million in the similar corresponding period of the previous year.
Meanwhile, revenue passenger kilometres ( RPK) was at 7.28 million during 2QFY18, up seven per cent from 6.79 million the previous year.
According to the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research), ASK continued to grow in 2QFY18 from added frequencies in two routes namely Taipei and Busan, with the same fleet capacity at 22 A330s as of June 2018.
“While some destinations saw frequency additions, we believe that ASK growth was moderated by frequency reduction to Beijing and withdrawal from Tehran,” MIDF Research said.
On AAX’s passenger load factor ( PLF) during the quarter, it was at 81 per cent, up one percentage point ( ppt) year on year ( y- o-y) from 80 per cent in the same period last year.
The research arm believed this could be due to better demand in core markets such as Taipei, hence the higher frequency.
As for AAX Thailand’s load
While some destinations saw frequency additions, we believe that ASK growth was moderated by frequency reduction to Beijing and withdrawal from Tehran.
MIDF Research
factor, it had similarly reported a healthy PLF of 91 per cent.
“In 2Q18, AAX Thailand carried a total of 483,595 passengers, rising substantially by 25 per cent y- o-y,” the group said.
“AAX Thailand took delivery of one additional aircraft during the mid of April 2018, bringing total fleet size in Thailand to seven aircraft at the end of June 2018.”
MIDF Research believed the addition of another aircraft was necessary, given the strong travel demand.
The research arm recalled that passengers carried in the first half of FY18 (1HFY18) grew at an average of 22 per cent y- o-y.
“We observed that the 2QFY18 operational fronts have been strong which could signal another strong quarter for AAX,” it said.
“However, we are cognizant that there may be a few headwinds including oil prices which have averaged 25.7 per cent higher since the beginning of the year.”
MIDF Research recalled that fuel cost accounted for about 35 per cent of total operating expenditure (opex).
Nonetheless, the research arm remained optimistic, anchored on AAX’s long-term strategic plan of further reduction in cost per ASK (CASK) following expansion plan and stronger focus in core markets.