AirAsia X posts net profit of RM32.8b in FY2022

AirAsia X posts net profit of RM32.8b in FY2022

AirAsia planes sit on the tarmac at Kuala Lumpur International Airport in Sepang August 28, 2016. — Reuters pic

Friday, 19 Aug 2022 7:47 PM MYT

KUALA LUMPUR, Aug 19 — AirAsia X Bhd (AAX) posted a net profit of RM32.80 billion for the financial year ended June 30, 2022 (FY2022) as travel restrictions have been gradually relaxed.

However, the long-haul budget airline recorded a net loss of RM652.52 million in the fourth quarter of FY2022 (Q4 FY2022).

Revenue in Q4 FY2022 stood at RM107.18 million, bringing the full-year revenue to RM438.77 million.

“The company is currently operating under a high fuel price environment, weakening of the ringgit against US dollar and obtaining regulatory approvals of the routes,” it said in a filing with Bursa Malaysia today.

AAX said as announced on Dec 2, 2020, the company’s financial year end has been changed to June 30, 2021 from Dec 31, 2020, and as such, there will be no comparative financial information available for the same quarter last year.

During the quarter under review, the group recorded a pre-tax loss of RM652 million compared with a pre-tax loss of RM33.62 million in Q2 FY2022.

“Subsequent to previous announcements made to Bursa Malaysia on the debt restructuring the company announced on March 16, 2022, the sanction order has been duly lodged with the Registrar of Companies of Malaysia, in accordance with Section 366(5) of the Companies Act, and the scheme of debt restructuring would take effect on that date.

“The lodgement of the sanction order marks the completion of the debt restructuring process, the company is now operating with clean financial position, whereby RM33.6 billion of provisions made for default under contracts and liabilities have been forgiven and reversed,” it said.

Moving forward, AAX said the company expected to ramp up its operations by the end of 2022 and early 2023, to Japan, Australia, New Zealand, United Kingdom, Istanbul, Dubai, and Jeddah, as travel restrictions had been gradually relaxed across the region, including in Malaysia.

The company has started operations to Incheon, Seoul and Delhi, India in the current quarter in 2022, it said.

“The planned routes have been taken into account on routes with high cargo loads and demand, which will contribute positively towards the company’s financials,” it said.

However, AAX expects the load factor to build gradually as there are challenges in some of the markets such as longer Australian visa application process, travel restrictions in Japan and Taiwan, and restricted entry in China. — Bernama