Air Asia X Bhd (AAX)’s 2QCY23 core net loss of RM33.8m brought 6MCY23 core net profit to RM8.7m
“On closer inspection, the earnings shortfall was due to 6MCY23 average user charge/stage flown coming in at USD6,050 and 6MCY23 aircraft leasing expenses coming in at RM28.1m,” said Maybank Investment Bank (Maybank IB) in the recent report.
AAX swung from 1QCY23 core net profit of RM42.5m to 2QCY23 core net loss of RM33.8m as it had to lower fares by 32% QoQ to attract passengers during the seasonally slower 2QCY23, and maintenance and overhaul (M&O) expenses surged 82% QoQ to RM115.8m as more aircraft returned to service.
Going into 3QCY23 and 4QCY23, AAX stated that passenger demand and fares are trending higher as we expected and M&O expenses will moderate to RM90m per quarter.
There are more passengers in FY23E, higher average user charges, and higher aircraft leasing expenses.
On another note, AAX expects to record a one off share of profits from 49%-owned Thai Air Asia X (TAAX) of more than RM300m in 4QCY23 once the latter’s debt restructuring is completed.
“If AAX had equity accounted for TAAX’s 2QCY23 core net profit, it would have added a punchy RM16.5m. We assume nil contributions from TAAX for now,” said Maybank IB.
