AirAsia X reports earnings for the first time since 2019 Aviacionline

AirAsia Aviation Group Limited, holding company of Capital A’s group of airlines, reported its financial and operating results for the third quarter of 2022.

In a press release, the company noted that its business portfolio continued to recover during the period, while its market shares in each of its operating spaces also remained up.

Separately, its long-haul subsidiary, AirAsia X, posted profits for the first time since 2019, the last year prior to the start of the pandemic. The airline benefited from the near total lifting of restrictions in the region (despite lingering ones in China) and the recovery of much of its operating schedule.

«We continue to move towards pre-pandemic normalcy and it’s motivating to see the synergies across our portfolio of businesses drive further growth and market share gains as they leverage off one another», said Tony Fernandes, CEO of Capital A.

On the other hand, he was optimistic about the near future and pointed out contextual aspects that he considers beneficial to continue on the path of recovery. He noted that «oil prices are going down» and that «Southeast Asian currencies are strengthening against the United States dollar».

He also stated that a recession could benefit the company’s business, as customers would turn to low-cost alternatives.

AirAsia Group’s key financial and operating results in the third quarter of 2022

• During the third quarter of the year, the Group recorded positive operating cash flow, particularly due to the sustained upward trend in forward bookings of its airline business.
• AirAsia X recorded revenues of about 22 million dollars and a net profit of 5.52 million.
• The average occupancy rate of the Group’s airlines reached 86% between July and September, representing a growth of two percentage points over the same period in 2019.
• The Group achieved a 67% recovery of its total capacity in domestic operations compared to the third quarter of 2019. In the international sector, the recovery reached 34%.
• The Group’s carriers currently have a total of 125 aircraft in operation. The company expects to continue to reintroduce units and end the year with 140 aircraft in service. It also stressed that it would return to a total of 205 operational airplanes by the second quarter of 2023.
• The Group has reinstated 99% of the staff laid off up to November and expects to rehire the remaining staff before the end of the year, the company said.

See also: Tata Group becomes sole owner of AirAsia India after acquiring remaining stake

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