2016 Q1 Financial Results for Air Asia Group

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AirAsia X Returns To Profitability, Q1 Pre-tax Profit At RM218.52 Mln

KUALA LUMPUR, May 24 (Bernama) -- AirAsia X Bhd recorded a pre-tax profit of RM218.52 million for the first quarter ended March 31, 2016 (Q1 2016) compared with a pre-tax loss of RM117.28 million a year ago.

Revenue jumped to RM970.67 million from RM775.37 million, mainly due to the increase in passenger traffic and growth in average base fare.

Group Chief Executive Officer Datuk Kamarudin Meranun said the low-cost airline had embarked on various turnaround initiatives to strengthen its foundation by addressing cash liquidity, instituting a more disciplined cost structure and using consolidated network to earnings growth.

"These initiatives have resulted in improvements in our core operations.

"In the first quarter of 2016, the China market contributed the highest growth to Malaysia AirAsia X operations. Revenue from China increased 49 per cent year-on-year (YoY) due to higher passenger traffic while average base fare improved 54 per cent YoY," he said in a statement.

He said the airline projected this positive trend to carry through this year with the implementation of the visa waiver for Chinese tourists visiting Malaysia, and it expected the strong inbound traffic from China to feed into other core markets.

Thai AirAsia X also recorded high load factor of 88 per cent for the Bangkok-Shanghai route and it has recently added Bangkok-Shenyang route to its growing network in April.

AirAsia X intends to fortify its presence in China with more new routes from Malaysia and Thailand this year.

Meanwhile, AirAsia X Chief Executive Officer Benyamin Ismail said moving forward the group remained focus on exploring strategic initiatives to sustain its earnings momentum for sustainable growth in Malaysia and Thailand while re-evaluating its operations in Indonesia.

The industry's challenging environment is expected to persist with currency volatility, regulatory uncertainty and other external headwinds.

"We have hedged 100 per cent of the company's fuel requirement for the remaining quarters of 2016 at an average jet fuel price of US$54 per barrel on planned existing routes.

"This will effectively allow us to mitigate fuel cost volatility and better manage cost while we venture into new routes," he said.

In Q1 2016, the company's fuel expenses reduced by 11 per cent due to lower fuel prices, which helped to reduce cost per available seat kilometre by eight per cent YoY.

Bursa filing:

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=191371&name=EA_FR_ATTACHMENTS

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Press Release:

http://airasiax.listedcompany.com/newsroom/PressReleases_1Q2016.pdf

 

Slide Presentation - For those interested in information on new route developments and aircraft fleet plans, please check out this presso:

http://airasiax.listedcompany.com/misc/qr/presentation_slide_1Q2016.pdf

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CIMB Research ups AirAsia X target price but cautious on outlook

 

http://www.thestar.com.my/business/business-news/2016/05/25/cimb-research-ups-airasia-x-target-price-but-cautious-on-outlook/

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AirAsia X yields skyrocket as Malaysian competition rationalises and key markets pick up

 

The AirAsia X Group has not allocated IAAX any additional A330s in its 2016 fleet plan. As a result IAAX at this point is not planning to launch any new long haul routes in 2016. Nevertheless, the plan for 2016 could change, depending on market conditions, the way its initial three long haul routes mature, and whether IAAX succeeds at becoming profitable.

 

IAAX has struggled since taking its first aircraft in late 2014 and launching operations in Jan-2015. IAAX was initially set back by a costly four month delay in launching services to Melbourne, its intended launch route, following a regulatory hiccup in securing approvals from Australia.

IAAX is now performing relatively well in Melbourne, an indication that efforts to rebuild the AirAsia X brand in Australian market have succeeded. AirAsia X is also encouraged by the initial bookings on Bali-Sydney and is looking at Bali-Brisbane, which would be its third route in the Indonesia-Australia market. IAAX would have the capacity to add Brisbane using its two-aircraft fleet but may not have the capacity to also launch other routes.

IAAX is now working to meet Indonesian regulations requiring airlines to have positive equity and maintain a fleet of at least 10 aircraft, including five owned aircraft. Consequently, IAAX is the only AirAsia X affiliate to operate A320s which it deploys domestically on behalf of Indonesia AirAsia.

For now AirAsia X continues to be optimistic about Indonesia. But the reality is that retaining an affiliate in the Indonesian market could ultimately prove to be too costly given the current bizarre regulatory environment.

A fleet of only two A330s is also clearly inefficient. The group could be better of pulling the plug on IAAX and redeploying the aircraft to Malaysia or Thailand. Future growth at Indonesia AirAsia X appears to be off the cards until a review is complete.

Full analysis:

http://centreforaviation.com/analysis/air-asia-x-yields-skyrocket-as-malaysian-competition-rationalises-and-key-markets-pick-up-283492

 

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Airasia Q1 2016 net profit for the period was RM876.9 million compared to a net profit RM149.3 million in the same quarter of 2015

Bursa filing:

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=191638&name=EA_FR_ATTACHMENTS

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AirAsia's 1Q net profit up 6-fold on higher passenger volume, lower fuel costs

 

http://www.theedgemarkets.com/my/article/airasias-1q-net-profit-6-fold-higher-passenger-volume-lower-fuel-costs

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AirAsia Q1 Profit Before Tax Surges To RM1.093 Billion

KUALA LUMPUR, May 26 (Bernama) -- AirAsia Bhd's profit before tax for the first quarter ended March 31, 2016 surged to RM1.093 billion from RM193.299 million in the previous corresponding period.

Revenue jumped to RM1.699 billion for the period under reveiw from RM1.296 billion previously, it said in a filing to Bursa.

In a separate statement, AirAsia said for its Malaysian operations, it posted quarterly revenue of RM1.70 billion, up 31 per cent from the same quarter last year.

"The strong revenue recorded was on the back of a 17 per cent year-on-year (YoY) growth in the number of passengers carried at 6.48 million which was well ahead of the three per cent capacity growth, allowing the company to record a high load factor of 85 per cent and YoY growth of 10 percentage points," it said.

AirAsia Bhd CEO Aireen Omar said the positive momentum in the Malaysian operations has continued well into the current quarter.

"Our improved Revenue per Available Seat Kilometre (RASK) proved that low fares stimulate the market as seen by the sustained increase in the number of passengers," she said.

During the quarter under review for its Malaysian operations, the company posted RASK of 16.88 sen, up 17 per cent YoY.

AirAsia Group CEO Tan Sri Tony Fernandes said AirAsia is also looking forward to the re-launch of AirAsia Japan, which has obtained its Air Operator's Certificate and will officially re-commence operations by the third quarter of 2016.

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Press Release:

http://www.airasia.com/cdn/docs/common-docs/investor-relations/airasia-press-release_1q16.pdf

 

Analysts' Presentation:

http://www.airasia.com/cdn/docs/common-docs/investor-relations/airasia_presentation_1q16.pdf

[JuliusWong 0]

RM1.093 billion RM193.299 million that is A LOT!!

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They are back in expansion mode now. They just took delivery of 9M-AJZ MSN 7136 on 25 May.

 

Looking forward to seeing the NEO soon!

[JuliusWong 0]

Didn't they complete their A320ceo order book already? More coming???

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Didn't they complete their A320ceo order book already? More coming???

MSN 7164 is next....