AAX returns to the red in Q4 with a net loss of RM652.52 million

KUALA LUMPUR (Aug 19): AirAsia X Bhd (AAX) ended its fiscal year 2022 (FY22) on a negative note by falling back into the red in its fourth quarter ended June 30, 2022 (4QFY22) with a net loss of 652 RM .52 million.

It was profitable in the previous quarter (3QFY22), when it posted a net profit of RM33.62 billion after reversing a similar amount in profit following the completion of the group’s debt restructuring.

Revenue at AirAsia Aviation Group’s low-cost long-haul subsidiary fell to RM107.18 million in 4QFY22 from RM113.01 million in 3QFY22, according to its Bursa Malaysia filing.

No comparative figures for the corresponding quarter of the previous year were provided as the group changed its financial year end from December 31, 2020 to June 30, 2021.

For the full 22 financial year ended June 30, 2022, Practice Note 17 reported a net profit of RM32.8 billion – after RM33.6 billion of provisions made for default under contracts and liabilities were reversed and canceled within a year of completing its debt restructuring process. The annual turnover amounted to RM438.77 million.

As travel restrictions have gradually eased in the region, AAX said it has started operations in Incheon, Seoul and Delhi. It is expected to ramp up operations by late 2022 and early 2023 in Japan, Australia, New Zealand, UK, Istanbul, Dubai and Jeddah.

“Planned routes have been taken into account on routes with high load and freight demand, which will contribute positively to the company’s finances.

“The company is currently operating in an environment of high fuel prices, a weakening ringgit against the US dollar and obtaining regulatory approvals for routes. The company also expects the load factor to gradually strengthen as there are challenges in some markets such as the longer Australian visa application process, travel restrictions in Japan and Taiwan and restricted entry into China,” he added.

AAX shares finished half a sen or 1.02% higher at 49.5 sen on Friday August 19, giving it a market capitalization of RM205.33 million. The stock has fallen 23.85% since the start of the year.

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