Posted on: 21 August 2014 by Mark Howells
AirAsia X (AAX) has announced its figures for the second quarter (2Q14) and first half (1H14) of this calendar year.
In comparison with the first six months of 2013, the airline has seen a 38.5% growth in revenue, along with a consistent gain in second quarter revenue of 36.7% year over year. The cumulative revenue for 1H14 came to RM1.42 billion.
During 4Q13 the airline increased capacity significantly by introducing flights into new cities within its core markets, as well as increasing frequencies on popular routes to Sydney, Melbourne and Shanghai among others.
“Although our capacity expansion has put short-term pressure on earnings performance, the long-term strategic advantages are very compelling. We now have our strongest route network, with multiple cities in each of our markets, and strong frequencies that lead to convenient transfer connections,” commented AirAsia X CEO, Azran Osman-Rani.
AAX’s load factor has remained over 80% since the beginning of 2014, attributed to the airline’s tripled market share in passengers travelling between Australia and North Asia on a one-stop service.
The new services meant operating expenses rose by 61.5% for 1H14 in comparison with 1H13, and AAX recorded a loss after tax of RM140.1 million compared to a profit after tax of RM17.9 million in the first-half of 2013. However, the airline hopes to be back to profitability within the next 12 months.