AirAsia X the long-haul budget carrier of Malaysia reported a massive jump in profits thanks to a programme to reduce costs and higher passenger numbers.
The airline said the net profit for the January-March rose to 41.5 million ringgit ($10.47 million) from 10.3 million a year earlier while revenue rose 7.2 percent to a record 1.3 billion.
The carrier also saw an increase in passenger volume of 13 percent which was mainly due to the new routes that had been started during 2017. The airline also moved capacity from some Australian routes to flights to the North Asian market also helped with the increases.
AirAsia X said its cost per unit fell 2 percent year mainly due to the ringgit MYR strengthening against the dollar - the ringgit strengthened 4.5 percent in the first quarter, helping offset a rise in oil prices. Its average fuel price rose 33 percent to $88 per barrel, the airline said. Excluding fuel, it cut its costs per unit by 10 percent. “The company recognizes the challenges posed by the recent hike in fuel prices, and best mitigative efforts are being put forth through the boost in ancillary and capacity numbers,” the airline said in a bourse filing.
