KUALA LUMPUR: AirAsia X Bhd has returned to the black with a net profit of RM5.54 million in the second quarter ended June 30, 2023 (Q2 2023) versus a net loss of RM652.52 million in the same period last year on the back of a surge in international travel.
Revenue for the period increased fourfold to RM512.91 million versus RM107.18 million a year ago.
For the cumulative six months, it posted a lower net profit of RM333.54 million compared to RM33 billion in the first half of 2022 (1H22).
Revenue in 1H23 quadrupled to RM1.06 billion from RM220.2 million in the corresponding period last year.
The company said revenue was mainly generated from charter flights and cargo last year, as most of the fleet remained on ground and it only commenced minimal scheduled flights operations in the quarter ended June 30, 2022.
"While this reporting period has always seen relatively lower sales due to seasonality, the surge in international travel since reopening of borders have contributed positively to the revenue, translating to a 49 per cent recovery against the same period in 2019 (pre-COVID-19).
"Staff cost and maintenance cost continue to increase in tandem to the gradual reactivation of aircraft to 11 operating aircraft. "Consequently, the number of corresponding flying and ground crews has increased by 172 per cent and 209 per cent, respectively," it said in its Bursa Securities' filing.
The maintenance cost on the other hand increased on the back of higher utilisation and weakening of currency against the US Dollar.
Moving forward, the airline said it continues to focus on its fleet activation. It currently operates 11 aircrafts and expects 16 aircrafts to be operational by end of 2023 to support its network requirements and ultimately maximise the company's value.
"The Group has been on a steady and persistent course of relaunching all of its profitable routes, and now focuses on China as the country reopens, as well as increasing flight frequencies on routes with high demands. "Whilst strengthening the airline's position within the markets that it currently operates in, the group also has plans to launch fresh new routes to expand its reach to other regions. "On a whole, the group's recovery strategy is on track, and remains in motion.
In the coming quarters, the group expects to sustain the upward trajectory to ensure the viability of its earnings," it added.