KUALA LUMPUR: AirAsia X Bhd says it has returned to black as it focuses on sustainable growth as a mid-range low cost airline.
For the first time since 2019, AirAsia X recorded a net profit of RM25.1 million for the fifth quarter of 2022 ended September 30, 2022 compared to a net loss of RM652.5 million in the preceding quarter.
The company's revenue was slightly lower at RM100.1 million compared to RM107.2 million during the fourth quarter ended June 30, 2022 (Q4 2022).
This was on the back of a reduction in revenue from the freight services segment due to normalised scheduled flights operations.
During the period under review, the total number of sectors flown increased to 291 sectors from 226 sectors in Q4 2022.
Following its return to scheduled services in April 2022, AirAsia X said it had made notable progress in its network recovery, adding Sydney and two new dense-short-haul routes to Kota Kinabalu and Kuching to its network in September 2022.
AirAsia X also increased frequency to existing markets in Seoul and New Delhi to cater for strong pent up demand.
In terms of balance sheet and cashflow, the company charted a cash balance of RM79.5 million for the period ended September 30, 2022.
This was an increase of beyond 100 per cent compared to RM25.1 million in the preceding quarter.
"This was achieved predominantly on the back of a V-shaped air travel revival supporting the resumption of scheduled passenger flights to many of its most popular and profitable destinations, along with charter and cargo flights"
AirAsia X Malaysia chief executive officer Benyamin Ismail said it was now well on track in its recovery path even as the airline was compelled to operate in a challenging operational environment dictated by high fuel prices and a weakened ringgit against the US dollar.
Benyamin said while the airline was cautious of the strenuous operating conditions, it remained confident that the recovery of the company is on the horizon.
He added that it was reactivating more aircraft to service, bringing back furloughed staff by the first quarter of next year and was now recruiting new flight crew again.