flee 5 Report post Posted February 25, 2015 AirAsia X Q4 net loss widens to RM168mil PETALING JAYA: AirAsia X Bhd (AAX) saw its net loss widen to RM168.43mil for the fourth quarter ended Dec 31, 2014, from RM132.60mil in the previous corresponding period on higher operating expenses, foreign exchange losses on borrowings and fair value loss on fuel hedging contracts. During the quarter in review, the long-haul low-cost carrier’s revenue increased 20.4% to RM819.27mil from RM680.45mil in the corresponding period in 2013. Its loss per share narrowed to 7.1 sen from 10.10 sen previously. In its filings with Bursa Malaysia, AAX said its revenue per available seat-km (Rask) in the fourth quarter of 2014 improved 24.4% to 14.2 sen, compared with 11.35 sen in the corresponding period in the preceding year. The improvement was due mainly to higher scheduled flights (net of refund) including fuel surcharges which rose 3.8% year-on-year (y-o-y) to RM496.6mil; charter revenue, which more than doubled to RM104.2mil from RM38.1mil; freight and cargo revenue, which rose 11.2% to RM28.7mil; and ancillary revenue, which rose 12% to RM157.2mil. “It was a challenging year due to external factors beyond our control and internal inefficiencies that need to be addressed. Due to the aviation incidents in 2014, our sales performance are also affected in markets like Australia and China,” AAX group CEO Datuk Kamaruddin Meranun said in a statement. “We have trimmed capacity growth to below 5% and terminated the non-performing routes such as Adelaide and Nagoya. Marketing and other measures to bring back demand and loyalty will also be intensified. These revenue-driven measures coupled with operational efficiencies will be positively reflected in 2015,” he added. More: http://www.thestar.com.my/Business/Business-News/2015/02/25/AirAsia-X-Q4-net-loss-widens-to-RM168mil/?style=biz Bursa Malaysia filing: http://airasiax.listedcompany.com/misc/qr/quarterly_report_20141231.pdf Press Release: http://airasiax.listedcompany.com/newsroom/PressReleases_4Q2014.pdf Analyst slide presentation: http://airasiax.listedcompany.com/misc/qr/presentation_slide_4Q2014.pdf Share this post Link to post Share on other sites
flee 5 Report post Posted February 25, 2015 (edited) TF dreaming again... I don't think HNL is a viable route and Hawaii is not a cheap destination to go to. Plus the inconvenience of having to apply for US Visas. Sounds like desperation - they have many planes but nowhere to fly them to. Is HNL doable non-stop? They might need to go via TPE or NRT - route may be viable with fifth freedom rights. European routes? They need to work with some JV partner to provide feed. Otherwise, yields will remain very low, even with low oil prices. Tony Fernandes @tonyfernandes · Feb 20 Airasia x is closing in on European routes including London and also application process statting to hawaii Edited February 25, 2015 by flee Share this post Link to post Share on other sites
Walter Sim 1 Report post Posted February 25, 2015 He want to raise stock prices only Share this post Link to post Share on other sites
flee 5 Report post Posted February 25, 2015 He want to raise stock prices only Yes, I think the stock performance since IPO is dismal. Investors have been misled! He also tweeted about Maldives coming back... I wonder if it will still be the KUL-CMB-MLE triangular route or will it be a direct flight this time. Share this post Link to post Share on other sites
Tom/PER 0 Report post Posted February 25, 2015 (edited) On the positive side AAX are doing well in the aircraft leasing business with a handful of A333's currently leased out. I recall reading an article late last year on here that D7 were stunting their growth and not taking delivery of any new aircraft and then -XXU, V, W and Y arrived, could these not of been leased out prior to delivery?? I struggle to see how the 2 major aviation tragedies of 2014 especially in Australia had an influence of their bookings too. If any the bad and negative publicty surrounding their failure to start DPS-MEL services by their Indo off-shoot might be more truthful and factual, but that said this would of affected the q4 results. D7 are a great airline with a good product and they serve a wider niche market but maybe they just need to slow their aggressive expansion and concentrate on what they got. With the falling fuel prices their 1Q 2015 results should read a better story. Edited February 25, 2015 by Tom/PER Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted February 26, 2015 On the positive side AAX are doing well in the aircraft leasing business with a handful of A333's currently leased out. I recall reading an article late last year on here that D7 were stunting their growth and not taking delivery of any new aircraft and then -XXU, V, W and Y arrived, could these not of been leased out prior to delivery?? I struggle to see how the 2 major aviation tragedies of 2014 especially in Australia had an influence of their bookings too. If any the bad and negative publicty surrounding their failure to start DPS-MEL services by their Indo off-shoot might be more truthful and factual, but that said this would of affected the q4 results. D7 are a great airline with a good product and they serve a wider niche market but maybe they just need to slow their aggressive expansion and concentrate on what they got. With the falling fuel prices their 1Q 2015 results should read a better story. Tom, I agree with your comment. D7 offers a good products serving a niche market. Their CASK is one of the lowest in the world. Unfortunately, they bite off more than what they could chew previously and are now suffering cause of it. Not to mention, the MAHB pulling their legs on the new KLIA2 project previously. While AirAsia X did slow down their new aircraft delivery, they are taking eight A330-300 this year but more towards their affiliates in Thailand and Indonesia.. More A330-300 will be coming on board (4 in 2016 and 5 in 2017). These were presented in the Q4 2014 financial announcement: With the consolidation and lower fuel prices, hopefully we can see a better year for D7. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted February 26, 2015 Wonder if those aircraft delivery figures quoted above have the following factored in yet ? ..... Acting CEO Benyamin said the airline may look at deferring some plane orders and selling delivery slots. "If there are reasonable and keen buyers for those aircraft, we may sell the slots," he said. AirAsia X will also assess capacity requirement based on plane orders and deliveries coming up in the next few years, he said. This would include looking again at orders for Airbus A350 and A330neos, Benyamin said. ....... – Reuters, February 25, 2015. snipped from http://www.themalaysianinsider.com/business/article/airasia-x-to-cut-more-costs-defer-plane-orders Share this post Link to post Share on other sites
flee 5 Report post Posted February 26, 2015 AirAsia posts Q4 operating profit of RM226m but earnings hit by forex losses KUALA LUMPUR: AirAsia Bhd posted higher operating profit of RM226.29mil in the fourth quarter ended Dec 31, 2014 compared with RM202.87mil a year ago but its bottomline was hit by higher finance costs and a surge in foreign exchange (forex) losses. The low-cost carrier reported on Thursday its revenue was higher at RM1.478bil compared with RM1.276bil. But it was impacted by staff costs, which increased to RM198.81mil from RM165.98mil while depreciation of property, plant and equipment rose to RM184.83mil from RM123.23mil. Maintenance and overhaul expenses doubled to RM42.38mil from RM19.23mil while user charges and other related expenses increased to RM142.09mil from RM117.38mil. Its other income declined to RM44.19mil from RM99.48mil. This saw it posting loss before tax of RM391.98mil versus pre-tax profit of RM96.67mil. Affecting its financial performance was finance costs of RM153.87mil and foreign exchange losses of RM647.56mil. Full report: http://www.thestar.com.my/Business/Business-News/2015/02/26/AirAsia-posts-Q4-net-losses-of-RM428m/?style=biz Bursa Malaysia filing: http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/A68075885FB6604648257DF8003C28FB/$File/AirAsia%20Bursa%20Announcement%20-%20Q4%202014%20-%2026%20Feb.pdf Share this post Link to post Share on other sites
flee 5 Report post Posted February 26, 2015 Wonder if those aircraft delivery figures quoted above have the following factored in yet ? snipped from http://www.themalaysianinsider.com/business/article/airasia-x-to-cut-more-costs-defer-plane-orders No - in their Q3 2014 report, it was mentioned that two aircraft will be sold. From the slides, it would appear that any sales will come from the AAX Malaysia fleet. The eight deliveries scheduled for 2015 looks firm as this schedule is already modified earlier. However, it would appear that they were able to cut the 2016 deliveries to only four aircraft. From the chart, it would appear that they have decided that the A350-900 is too much plane for them. They might already have begun talks with Airbus to convert the 10 aircraft ordered to A330-900. Share this post Link to post Share on other sites
flee 5 Report post Posted February 27, 2015 Malaysia's AirAsia posts first net loss in two years AirAsia (AIRA.KL) on Thursday reported its first net loss in two years, citing heavy foreign-exchange losses along with higher financing and operating costs. Asia's largest budget airline by passengers volume said it is recovering from a slight loss in demand after the December plane crash that cost the lives of the 162 people on board a flight operated by its Indonesia affiliate, but it is continuing to grapple with that a string of cost factors. While fourth-quarter foreign-exchange losses leapt to 647.6 million ringgit ($180.8 million) from 34.9 million ringgit a year earlier, financing costs jumped 45 percent to 153.9 million ringgit and operating costs rose more than 9 percent, largely because of staff bonuses. That sent the company to a net loss of 428.5 million ringgit, against a net profit of 168.5 million ringgit a year earlier, with revenue up 15 percent at 1.5 billion ringgit. The last time the company registered a quarterly net loss was for the final three months of 2012. AirAsia also faced higher depreciation costs on additional aircraft, an increase in airport landing costs and charges on dollar-denominated international routes, it said. Full report: http://www.reuters.com/article/2015/02/26/us-malaysia-airasia-results-idUSKBN0LU16X20150226?type=companyNews Airasia press release: http://www.airasia.com/docs/common-docs/investor-relations/aa_4q14_press_release.pdf Investor/analyst presentation: http://www.airasia.com/docs/common-docs/investor-relations/aa_4q14_analyst_presentation.pdf Share this post Link to post Share on other sites
KK Lee 5 Report post Posted February 27, 2015 The Forex loss is more than myr depreciation against USD n euro, ak was betting the myr? Share this post Link to post Share on other sites
Tom/PER 0 Report post Posted February 28, 2015 That Capacity Management graph is a tad deceptive as TAAX has just taken delivery of their 3rd A333 HS-XTC ex Captain Park plane -XXO. The 2015 new delivery predictions might not be factory fresh planes but internally transferred ones - over inflated figures maybe? As a side-note the only leaves the albino -XXM as the last remaining ex KA A333 in the D7 fleet but for how long one must wonder. Share this post Link to post Share on other sites
BC Tam 2 Report post Posted February 28, 2015 Wow, the ex KA birds all gone already bar one ? The others are presumably in Thailand and/or Indonesia ? Share this post Link to post Share on other sites
flee 5 Report post Posted March 1, 2015 (edited) Wow, the ex KA birds all gone already bar one ? The others are presumably in Thailand and/or Indonesia ? Yes, three are deployed at Thai Airasia X and two at Indonesia Airasia X. The one remaining in Malaysia is all white, 9M-XXM - photo below was shot at klia2 on 27 Feb 2015. Edited March 1, 2015 by flee Share this post Link to post Share on other sites
BC Tam 2 Report post Posted March 2, 2015 Thanks Flee Would I be right to guess that those ex KA birds were leased in primarily to have the Thai and Indonesian AAX operations up and running as soon as possible after regulatory approvals ? Cannot be an easy job managing the fleet at AAX, with 333's being leased out and leased in at the same time, new birds being delivered and orders deferred and/or swapped with other birds ! Share this post Link to post Share on other sites
flee 5 Report post Posted March 2, 2015 Cannot be an easy job managing the fleet at AAX, with 333's being leased out and leased in at the same time, new birds being delivered and orders deferred and/or swapped with other birds ! Airasia Group has set up a new leasing company - Asia Aviation Capital - to manage aircraft subleases to affiliates. I suppose the Airasia X aircraft could also be included. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 2, 2015 (edited) The six jets from KA were leased with the anticipation of TAAX and AirAsia Indonesia Xtra would obtained their AOC and commenced inaugural as per original plan. As we all knew, things didn't pan out well. AAX was saddled with too many aircraft. They leased out to Air Algerie, Conviasa and some others. At the same time, they need to pay for refurbishment. In addition, the KLIA2 were late, very late when the long haul travelling was booming, pre MH370 and MH17 and QZ8501 time. Edited March 2, 2015 by JuliusWong Share this post Link to post Share on other sites
flee 5 Report post Posted March 2, 2015 In addition, the KLIA2 were late, very late when the long haul travelling was booming, pre MH370 and MH17 and QZ8501 time. Yes, I tend to support that - D7 would have grown much bigger and stronger had klia2 been completed on time. They tried to catch up on their growth last year but the markets could not support such rapid expansion. With the dual MH disasters, that made it even worse as MH cut fares to unprofitable levels to drive demand. That made the competition irrational and everyone suffered. Share this post Link to post Share on other sites
JuliusWong 0 Report post Posted March 2, 2015 AirAsia X eyes Hawaiian, New Zealand markets http://www.ch-aviation.com/portal/news/35467-airasia-x-eyes-hawaiian-new-zealand-markets Share this post Link to post Share on other sites
KK Lee 5 Report post Posted March 2, 2015 AirAsia X eyes Hawaiian, New Zealand markets http://www.ch-aviation.com/portal/news/35467-airasia-x-eyes-hawaiian-new-zealand-markets Provided D7 can secure fifth freedom between Japan and HNL, AUS and NZ else unlikely to be economically viable. Share this post Link to post Share on other sites
flee 5 Report post Posted March 2, 2015 (edited) Provided D7 can secure fifth freedom between Japan and HNL, AUS and NZ else unlikely to be economically viable. As I stated before, HNL isn't exactly a high demand route from KUL. However, D7 can serve it via HKG, TPE, NRT or ICN. Right now, NRT would probably be the best bet. It should drum up more demand for the KUL-NRT sector too and frequencies can then increase. As for NZ, D7 can serve it via MEL and/or SYD since they have double daily frequencies. One of those can go on to AKL or CHC. They could also go via OOL and restore the service to daily. I think trans Tasman services are Open Skies, so there should be no worries about fifth freedom rights. With lower fuel prices now, it would be a good time to start new fledgling routes. D7 will have more time to make them successful. Edited March 2, 2015 by flee Share this post Link to post Share on other sites
