AirAsia celebrates resumption of its Amritsar - Kuala Lumpur service

AirAsia X welcomed the resumption of its highly anticipated second direct destination in India, from Amritsar to Kuala Lumpur yesterday, connecting the two cities with great value fares.

The welcoming ceremony was graced by dignitaries from the High Commission of India represented by Mr. Aditya Fotedar, Second Secretary, and Tourism Malaysia, represented by Mr. Hafiz Hazin, Deputy Director International Promotion Division (Asia/Africa). 

The route resumption underlined the importance of fostering closer ties between India and Malaysia through direct air connectivity. Guests landed at Kuala Lumpur International Airport (Terminal 2) were celebrated by a limited-edition merchandise giveaway and special Sikh ceremony, symbolising the unity of diverse cultures that the two countries proudly bring together.

AirAsia X Chief Executive Officer, Benyamin Ismail said: “We are elated to welcome the return of services between  Amritsar to Kuala Lumpur. The resumption of this route with four flights weekly comes at a time when both leisure and business travel are on the rebound, showcasing our continued commitment to providing more popular destinations to meet growing demand,  alongside great value fares for our guests. 

“In addition, guests flying with us will have the advantage of connecting onto their favourite destinations with our Fly-Thru service such as to Bali, Melbourne, Sydney, Gold Coast, Perth and more, seamlessly in one booking. We look forward to reconnecting families, friends, and businesses and to continuing to play a role in fostering economic growth and cultural exchange between the two countries.”

AirAsia X reports record post-COVID-19 net profit of over RM153 million with only 50% of fleet activated

AirAsia X Berhad, the mid-range affiliate airline of AirAsia Aviation Group has reported its financial results for the Sixth Quarter of 2022 and full Financial Year 2022 ending 31 December, 2022.

The Company recorded a significant improvement in revenue of RM339.3 million in 6Q22 by carrying 337,638 passengers, boosted by the year-end peak travel season. In addition, average base fare in 6Q22 was a record-high at RM866 strengthened by the as-anticipated and continuing pent-up demand for international air travel within the region. Ancillary revenue per passengers marked RM196 during the quarter, up 17% compared to the same period in 2019. Passenger Load Factor (“PLF”) was healthy at 79%, up  six percentage points from the previous quarter, and showed an over 97% recovery of the same period in 2019. These positive key metrics resulted in the Company posting net operating profit of RM149.6 million and net profit of RM153.5 million. The Company has also managed to strengthen its cash position, which stood at RM181.9 million as of December 2022. 

On the cost side, the Company showed a significant improvement. The Cost per Available Seat Kilometre (“CASK”) in 6Q22 was recorded at 9.98 sen compared to 13.49 sen in 5Q22, while CASK ex-fuel dropped substantially to 1.42 sen from 6.95 sen in 5Q22. When compared to 4Q19, both CASK and CASK ex-fuel reduced substantially by 25% and 83% respectively, on the back of a revised cost structure post-restructuring. Revenue per Available Seat Kilometres (“RASK”) for the quarter stood at 19.96 sen, an increase of 13% from 5Q22, and surged by 53% when compared to RASK of 13 sen in 4Q19. In 6Q22, the Company launched flights to Melbourne, Perth, Sydney-Auckland, Tokyo-Haneda, Sapporo, Taipei, Jeddah and Bali-Denpasar, ending the quarter with 14 routes within its network. 

AirAsia X returns to Japan’s gourmet capital Osaka

 

AirAsia X (AAX) returned to Osaka, Japan early today further expanding its network to/from the land of the rising sun. 

The inaugural flight departed from Kuala Lumpur at 11.45pm last night and arrived in Osaka at 7.15am this morning. In celebration of the service resumption to Japan’s gourmet capital, all guests on the inaugural flight received gift bags and were treated to special performances before boarding.

The three weekly flights to Osaka are set to bring more than 116,000 travellers between Malaysia and Japan monthly and deliver a welcome boost to both countries’ tourism sectors.

AirAsia X Malaysia CEO Benyamin Ismail said, “We are pleased to start the new year with the announcement of our 13th route from Kuala Lumpur to Osaka. Following the resumption of services from Kuala Lumpur to Tokyo (Haneda) and Sapporo late last year, we have carried close to 30,000 guests between Malaysia and Japan post-pandemic. 

“Today, we have seen a strong passenger load factor for our inaugural flight of more than 95% and we are confident that this route will be very well received despite the competitive landscape. As travel demand rebounds, we will continue to expand our services to exciting destinations in Asia from our regional hubs in Kuala Lumpur and Bangkok.”

To celebrate the return to one of its most popular destinations AAX is offering great value all-in* fares between Kuala Lumpur and Osaka from RM699/JPY29,990 all-in one-way for economy or RM2,999/JPY106,640 one way for a Premium Flatbed.

As a Group, AAX flies to three destinations in Japan namely Tokyo, Osaka and Sapporo from Kuala Lumpur operated by AirAsia X Malaysia (D7) and from Bangkok (Suvarnabhumi) operated by AirAsia X Thailand (XJ).

AirAsia X Fifth Quarter 2022 Financial Results

AirAsia X Fifth Quarter 2022 Financial Results

AirAsia X  returns to black as it focuses on sustainable growth as mid-range low cost airline

Recorded a net profit of RM25.1 million for the first time since 2019, cash position more than tripled to RM79.5 million on the back of COVID-19 recovery

Operational statistics indicate unwavering demand for travel

AirAsia X, the mid-range affiliate airline of AirAsia Aviation Group has reported its financial results for the Fifth Quarter of 2022  ending 30 September 2022.

The Company posted a net profit of RM25.1 million for the quarter, as compared to a net loss of RM652.5 million in the preceding quarter. Revenue was slightly lower at RM100.1 million as compared to RM107.2 million during the period ending 30 June 2022 (“4Q22”) on the back of a reduction in revenue from the freight services segment due to normalised scheduled flights operations.

In other segments, recovery across all key metrics has significantly improved as scheduled passenger and charter flights as well as ancillary revenues have demonstrated a strong recovery compared to the preceding quarter. For 5Q22, the Company posted an earnings before interest, taxes, depreciation, and amortisation (“EBITDA”) of RM25.4 million while profit before tax for the period stood at RM23.8 million. 

Operationally, the Company is pleased to report that Passenger Load Factor (“PLF”) was recorded at a commendable 73% during the quarter - less than 10 percentage points short of its pre-COVID-19 PLF of 81% in 2019. The Company carried a total of 80,385 passengers during the period under review as compared to 8,892 passengers during the period from April - June 2022. Seat capacity grew to 110,615 during the quarter from 27,521 in the preceding quarter as additional markets and frequencies were introduced in 5Q22. 

AirAsia X to be the first airline to reconnect Kuala Lumpur directly to Busan

AirAsia X CEO Benyamin Ismail and President of BTO Jung-Sil Lee at the MoU signing ceremony between AAX and
BTO at Pavilion Hotel Kuala Lumpur. Photo Air Asia

AirAsia X (AAX), the mid-range airline affiliate of AirAsia Aviation Group, is set to be the first airline from Malaysia to reconnect direct flights from Kuala Lumpur to Busan, South Korea in early 2023.

The thrice-weekly flights will be the second AAX route to South Korea after launching flights to Seoul in April this year.

In addition to relaunching the route, AAX also signed a Memorandum of Understanding with Busan Tourism Organisation (BTO) to develop joint sales and marketing campaigns, leverage travel agents support, strengthen flight connectivity, and foster both countries’ economies through tourism.

The MoU was signed at Pavilion Hotel Kuala Lumpur by AirAsia X CEO Benyamin Ismail and President of BTO Jung-Sil Lee.

AirAsia X CEO Benyamin Ismail said: “We are excited to be the first airline from Malaysia to return to Busan. South Korea is an incredibly important market and we have seen tremendous growth from our existing route to Seoul with around 80% average load factor. Starting with three weekly services and based on strong forecast demand, we expect the flight frequency to Busan to return to daily services by year-end. We believe the relaunch of the Busan route will provide a significant boost to strengthen business and tourism ties between Malaysia and South Korea, and we wish to thank the governments and relevant authorities for their tremendous support.

AirAsia X announces strong business recovery Profit

AirAsia X, the medium to long-haul affiliate airline of AirAsia Aviation Group, recorded revenue of RM107 million during the period ending 30 June 2022, down marginally by 5% quarter-on-quarter as compared to RM113 million posted during the period ending 31 March 2022. 

In terms of bottomline, AAX posted a Loss Before Tax of RM652 million during the period under review. It is imperative to highlight, however, in terms of earnings, AAX would have returned to profitability and posted a Profit Before Tax amounting RM0.3 million, barring a one-off provision for travel vouchers distributed to passengers and travel agents who were affected by the debt restructuring.

For the quarter ending 30 June 2022, the Company rendered a one-off provision amounting to RM653 million primarily for the issuance of the travel vouchers in relation to the commitment that AAX has for its affected passengers and travel agents. For the purpose of a summary, AAX is bound by terms of the debt restructuring scheme in respect of its debts and liabilities. AAX is hence legally restricted from providing any cash refund to passengers and travel agents. In its aim to ensure that affected passengers are able to fly with the airline again, and as a gesture of goodwill, AAX  opted to offer promotional air privileges in the form of travel vouchers to passengers, amounting to the full amount of the cancelled flight bookings caused by the pandemic. 

At the completion of its debt restructuring - which was formalised on 16 March 2022 by way of a lodgment of court sanction - AAX is now on a steady course to significantly increase scheduled passenger flight operations to meet strong pent up demand. 

During the period under review, the total number of sectors operated solely for scheduled passenger flights stood at 81 sectors, a multifold surge from the 12 sectors flown during the 3-month period until 31 March 2022. There has been a notable shift in the operating expenses structure of AAX. Staff costs increased on the back of the reinstatement of staff and salary for employees, in addition to an increase in maintenance and overhaul costs, attributed primarily to the reactivation of aircraft in preparation for the major operational ramp-up trajectory in the coming months. Notably, despite the increase in fuel price, total fuel expenses reduced on the back of a decline in charter flights. 

In terms of balance sheet and cashflow, AAX charted a cash balance of RM25 million for the period ending 30 June 2022, primarily generated from the progressive and promising business opportunities centred around the resumption of scheduled passenger flights, charter and cargo flights. 

AirAsia X shareholders approve corporate restructuring plan

AirAsia X Berhad has received approval from its shareholders for the proposed corporate restructuring to progress as planned, following the voting process at the AAX Extraordinary General Meeting (EGM) today.

The approval marks a major milestone in the corporate restructuring process. All resolutions were passed with at least a 99.8 percent margin. 

These approvals have been obtained simultaneously with final negotiations being held with creditors. 

The Company and its restructuring advisers, New York based Seabury Capital have been in active and productive discussions with lessors and other creditors after the approval granted by the court to convene the Court Convened Meeting (CCM). This is currently scheduled for late July or August.

AAX is committed to resuming commercial operations as soon as possible on a successful completion of the restructuring plan and the opening of international borders.

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Air Asia's CEO Tony Fernandes talks refunds

The chiasmatic Chief Executive Officer at AirAsia Group, Tony Fernandes took to social media recently to offer this video of the group's stance on refunds.

He told how his job at the group has seen him handle things he'd never have thought could p[possibility happen,  such as how to balance 245 grounded planes, pay over 22,000 staff, keep the jobs going, make sure to hire back over 2,000 staff they had to let go at the height of the pandemic. 

Air Asia has flown over 600 million people, many of whom never had the chance to fly before, Fernandes says as he addresses the issue of refunds.

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Air Asia X in a legal battle with Malaysian Airports

AirAsia X accommodates Malaysia Airports but will not be intimidated

 

                           AirAsia X has submitted a revised restructuring scheme to seek the convening of a court-sanctioned meeting for all creditors to vote on the terms of the restructuring. 

Pursuant to AirAsia X’s announcement of the scheme of 6 October 2020, Malaysia Airports (Sepang) Sdn Bhd (MASSB), objected to its classification as an unsecured creditor. After consultation, AirAsia X has accommodated MASSB and made certain clarifications and revised the scheme under two separate classes “A” and “B”. Class A shall consist of creditors who are considered critical or essential and who may have secured and/or other rights. Class B shall consist of creditors who do not fall within Class A. 

MASSB is now a Class A creditor.

Air Asia X carried just 2291 passengers in the second quarter.

AirAsia X Berhad has reported its financial results for the second quarter ended 30 June 2020 this week which demonstrated the firm had a revenue of RM91.4 million during the quarter down from RM1.01 billion in the same period in 2019, pre-COVID-19. 

The Company remained in hibernation throughout 2Q20 and continues in hibernation mode to date, maintaining only minimal operations in support of the repatriation of travellers and transportation of cargo. Seat capacity and the total number of passengers carried during the quarter were recorded at 6,032 and 2,291 respectively, while Passenger Load Factor (“PLF”) was recorded at 38%. This came on the back of flights ferrying cargo with minimal passenger take-up during the month of April 2020.   

In 2Q20, the Company posted a loss before interest, taxes, depreciation, and amortisation of RM129.2 million as compared to earnings before interest, taxes, depreciation, and amortisation of RM120.8 million in the same period last year. Net loss for the quarter stood at RM305.2 million.