KUALA LUMPUR (Nov 21): AirAsia X Bhd (AAX) said its Practice Note 17 (PN17) status will be uplifted on Wednesday after Bursa Securities allowed its appeal on the matter.

This comes after the medium-haul low-cost carrier reported a net profit of RM5.56 million for the third quarter ended Sept 30, 2023 (3QFY2023), down 77.83% compared with RM25.09 million posted for the same period last year due to higher aircraft fuel expenses and maintenance and overhaul costs.

AAX said Bursa Securities had resolved to allow the airline's appeal for the upliftment, and from having to implement a regularisation plan, subject to the group announcing a net profit for 3QFY2023.

"The upliftment of AAX from being classified as a PN17 company will come into effect on the next market day after fulfilment of the condition," the group said in a bourse filing on Tuesday.

AAX said Bursa Securities had noted that the airline had complied with the criteria for waiver and upliftment from being classified as a PN17 company.

Meanwhile, AAX said its revenue for 3QFY2023 surged by almost six fold to RM648.36 million, from RM100.10 million a year ago, on the back of a recovery in international travel and the group's available seat capacity over the past 12-month period.

On a quarterly basis, AAX’s net profit remained flat compared with RM5.54 million in 2QFY2023, while revenue rose from RM512.91 million.

For the nine-month period ended Sept 30, 2023, the group’s net profit fell 98.97% to RM339.10 million from RM32.99 billion. However, revenue rose to RM1.71 billion from RM320.30 million, underpinned by the number of operational aircraft to meet demand for international travel.

AAX has maintained the momentum in fleet recovery, with the group currently operating 14 aircraft out of its 17-strong fleet, and expects to add one aircraft to its fleet, bringing its total fleet size to 18 aircraft.

By December 2023, the group expects at least 16 aircraft to be operational, it added.

“The group continues its course in relaunching its key profitable routes and maintains its focus on the potential in China as the country's international travel traffic recovers.

“Apart from strengthening the airline's position within markets that it operates in, the group has also recently announced that it will soon service Almaty, Kazakhstan, which is a fresh and strategic route for the airline to expand its reach into other regions of the world.

“As a whole, the group's recovery strategy remains on track,” added AAX.

AAX shares settled three sen or 1.4% higher at RM2.10, giving the group a market capitalisation of RM938.85 million.