KUALA LUMPUR (Feb 29): Higher maintenance and overhaul cost, elevated staff cost and a rise in fuel prices have dragged down AirAsia X Bhd’s (AAX) fourth quarter net profit despite a jump in revenue.

For the three months ended Dec 31, 2023 (4QFY2023), AAX’s net profit tumbled 82.17% to RM27.37 million from RM153.48 million a year earlier, according to the group's bourse filing.

In contrast, revenue more than doubled to RM818.22 million from RM339.3 million in the previous October-December quarter, due to healthy passenger load factor and higher average passenger fare.

For FY2023 as a whole, AAX registered a net profit of RM366.47 million on revenue of RM2.53 billion.

The group had reported a net profit of RM33.14 billion for the 18-month period ended Dec 31, 2022 on  a revenue of RM659.59 million. This came on the back of a write-back of provisions and forgiveness of liabilities totalling RM33.6 billion following the completion of AAX's debt restructuring in March 2022.

Looking ahead, the group said it will focus on the activation of its full fleet, which is expected to be completed by 2QFY2024 and will bring all 18 aircraft into full operational capacity.

“This is key to the group's strategy of relaunching its key profitable markets, particularly now with recovery in China gaining momentum well into 2024,” said AAX.

In addition, AAX announced plans to inaugurate its first flight to Almaty, marking its maiden destination in Kazakhstan next month.

“The group continues to see encouraging trends from demand for flight services and ancillary products, and is optimistic of such [a] trajectory to sustain, with continued viability for its earnings,” AAX added.

Shares of AAX closed 4.49% or eight sen lower at RM1.70 on Thursday, giving the group a market capitalisation of RM760.02 million.