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AirAsia X Net Loss Widens On Fewer Flights
Malaysia Daily Bulletin | 20 August 2015
  • AirAsia X extended its net loss to RM132.9 million during the second quarter ended June 30, from a net loss of RM128.8 million a year earlier. Revenue for the quarter dipped 2.8 percent to RM653 million.
  • The poorer performance was due to lower schedule flights including fuel surcharges as a result of lower passengers flown. Load factor fell 12 percentage points to 68.4 percent, partially offset by a 7.2 percent improvement in average passenger fare to RM415.91.
  • For 1H15, net loss almost doubled to RM258.7 million, despite revenue inching up slightly to RM1,428.4 million versus RM1,421.1 million in 1H14.
  • Moving forward, the group said advance bookings indicated that recovery in passenger and yields evident in 2Q15 would hold up for the rest of 2015, while it remains on track with its turnaround plan with a focus on optimising fleet size and improve yields and loads.

Significance: In a separate note, CIMB Equities Research has maintained a ‘Reduce’ call in AirAsia X’s stock, with a lower target price of RM0.12. The research house deem the stock as too risky at the moment, noting that the firm is walking on a tightrope and even small changes in its environment can blow it off course.

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