KUALA LUMPUR, 31 May 2023: Preliminary April 2023 traffic figures released Tuesday by the Association of Asia Pacific Airlines (AAPA) showed continuing recovery in international passenger demand, reflecting the unabated appetite for travel in the region.

Collectively, airlines in the Asia Pacific recorded a 249.8% year-on-year increase in the number of international passengers carried to a total of 20.3 million in April, with demand averaging 63.3% of the corresponding month in 2019. Measured in revenue passenger kilometres (RPK), demand grew by 198.9% compared to the same month last year. Available seat capacity grew a more modest 150.2%, raising the average international passenger load factor by 13.0 percentage points to 80.0% for the month.

Meanwhile, export activity remained relatively muted due to declines in new business orders and trade barriers sharpened by geopolitical tensions. The easing of supply chain pressures also encouraged a shift to maritime shipping.

Against this background, air cargo demand, as measured in freight tonne kilometres (FTK), fell by 5.5% year-on-year in April. As offered freight capacity increased by 10.4%, the average international freight load factor declined by 10.1 percentage points to 59.8% for the month.

Commenting on the results, AAPA director general Subhas Menon said: “The recovery in Asian travel markets is still strong, with traffic flows within and from the region experiencing robust growth. Overall, during the first four months of the year, Asia Pacific airlines carried 74.2 million international passengers, a strong 438% year-on-year jump compared to the previous corresponding period.”

“Air cargo markets fell 11% during the same period, underlining the challenging business environment amid rising uncertainty in global economic conditions.”

Looking ahead, Menon noted: “Growth prospects for international passenger markets remain healthy, supported by positive trends in forward bookings over the coming months. While global economic growth is expected to moderate, the International Monetary Fund (IMF) has projected Asia Pacific economies to record a combined 4.6% increase in GDP this year, up from 3.8% in 2022, with domestic demand supporting growth in business and leisure travel.”

Menon added: “To meet strong recovery in demand, Asian airlines are working with aviation stakeholders to restore flights to various destinations while prioritising safety, sustainability, and travel convenience. Measures include staff recruitment, training, and investments in the digitalisation of the travel process, to upkeep the service standards for which the region’s airlines are known.”

(Source: AAPA)

SEPANG, 31 May 2023: AirAsia X registered a net profit of MYR328 million and revenue of MYR548.8 million during the first quarter ending 31 March 2023, marking a significant recovery of nearly 50% of the performance achieved in 2019, the company reported on Tuesday.

“These improved metrics are even more favourable as only two more additional aircraft were activated during the quarter, with another six aircraft in line to commence operations as of May 2023. Importantly, AirAsia X’s shareholders’ equity has demonstrated a positive turnaround to MYR40.8 million from a negative shareholders’ equity of MYR285.2 million in the preceding quarter, which now paves the way for AirAsia X to address its Practice Note 17 classification, subject to regulatory approval,” the airline explained in the press statement.

Cost per Available Seat Kilometres (“CASK”) reduced by over 50% to 6.50 sen compared to the same period in 2019 on the back of a revamped cost structure and rationalised capacity in the market. While operating expenses increased in tandem with the ramp-up in operations in recent quarters, this was supported by the more favourable fuel environment and further softened by an increase in ASK.

Revenue per Available Seat Kilometres (“RASK”) stood at 18.93 sen as the average base fare rationalised to MYR785 based on more normalised market capacity.

The steady climb in earnings resulted from a surge in passenger volume, the ramp-up of aircraft activation and a stronger fare environment in recent quarters.

In 1Q23, passengers increased to 504,476, driven by the New Year holidays and Spring season travel demand. This was further supplemented by the increase in seat capacity, which grew to 630,069 seats, while Available Seat Kilometres (“ASK”) surged to 2,899 million.

The fleet reactivation strategy remains on track to support the ramp-up of flight frequencies; AirAsia X relaunched even more destinations to cater to the strong demand for international travel, recommencing flights to Osaka, Busan and Shanghai, on top of increasing its services to fly seven times weekly to Tokyo.

Overall, the Passenger Load Factor (PLF) was strong at 80%, with star performers like Delhi and Tokyo posting close to 90% PLF in 1Q23. With the reopening of China for all travellers in early March 2023, AirAsia X is optimistic about the upcoming opportunities to launch more flights into the country, which has always been one of the airline’s strongest markets.

AirAsia X Thailand

Meanwhile, AirAsia X Thailand (TAAX) posted a revenue of MYR356.8 million, with a net profit of MYR92 million. During the quarter under review, TAAX carried 289,813 passengers, with a strong PLF of 88%. TAAX’s seat capacity during the quarter under review increased to 329,913 seats, while ASK rose by 40% to 1,601 million on the back of increased scheduled flights and frequencies. In 1Q23, TAAX maintained the number of destinations and recently announced the recommencement of its Bangkok-Shanghai route last April, marking its return to China.

AirAsia X raises capital

In terms of its financial position AirAsia X said in the press statement, “cash balance stood at MYR192.4 million as of the end of March 2023, and shareholders’ equity has returned to positive at MYR40.8 million.

“Recently, we announced a proposed placement of shares with key institutional investors, potentially raising up to MYR50 million of new capital, which will serve to bolster our short-term working capital requirements, strengthening the balance sheet as the company continues to recover and grow its operations in this post-pandemic era, primarily for the reactivation and maintenance of the company’s growing fleet.”

(Source: AirAsia X)