KUALA LUMPUR (Feb 28): AirAsia X Bhd (KL:AAX) reported a 17.6% decline in net profit to RM22.56 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), from RM27.37 million a year earlier, as foreign exchange (forex) losses weighed on its bottom line.

The medium-haul low-cost carrier booked a RM34.48 million net forex loss during the quarter, reversing the RM50.6 million gain in 4QFY2023.

Despite the lower net profit, revenue grew 6.6% year-on-year (y-o-y) to RM872.35 million, driven by 20% higher passenger volume and a 9% rise in ancillary revenue per passenger.

Earnings per share fell to five sen in 4QFY2024, compared to 6.1 sen a year ago. No dividend was declared for the latest quarter.

For the full year FY2024, AAX’s net profit dropped 37.5% to RM229.14 million, while revenue climbed 28.4% to RM3.25 billion. This marked the company's third consecutive full-year profit since FY2022. 

The Malaysia segment contributed 65.9% of total group revenue, while the Thailand segment accounted for the remaining 34.1%.

The number of passengers carried surged by 41% y-o-y at close to four million passengers, outpacing the 35% growth in seat capacity. Passenger load factor remained steady at 83%, up by three percentage points compared to the previous year.

AAX chief executive officer Benyamin Ismail expects the group to achieve a higher revenue of between RM3.5 billion and RM4 billion for FY2025, targeting an over 17% increase in passenger numbers as it works towards full fleet reactivation.

"In upholding transparency and accountability, we are introducing internal targets this quarter, which will keep us focused on creating sustainable value for our shareholders and broader stakeholders," he said in a separate statement. 

"These internal targets are solely management aspirations and do not constitute financial estimates, forecasts, or projections under Bursa Malaysia’s financial forecasting and disclosure standards,” the CEO clarified. 

As of Dec 31, 2024, AAX's total fleet size remained at 18 A330s, with 17 aircraft activated and operational. 

The final aircraft in long-term storage is expected to return online by the first half of 2025, and the 19th aircraft is also in the process of being inducted, said Benyamin.

He highlighted that the airline’s network has demonstrated solid performance, with passenger load factors exceeding 90% on popular routes. 

Benyamin noted that its Almaty, Kazakhstan route has shown strong fare and load trends since its launch in March 2024, while the addition of Nairobi, Kenya, further enhances AAX’s global footprint.

“AAX’s momentum continues with its network delivering solid performance metrics,” Benyamin said. “We are also working closely with our airport partners to support our growth strategy aimed at further cost reduction through improved pricing and incentives.” 

Following the unanimous shareholders' approval of the proposed acquisition of Capital A Bhd’s (KL:CAPITALA) aviation business on Oct 16, 2024, Benyamin said the company is now working towards completing the exercise, which includes a private placement, with book building set to begin after obtaining relevant approvals.

“This places us firmly on track towards unlocking the potential from our collective synergistic strategies with our sister AirAsia airlines,” he said. “Ultimately, we are intent on realising our ambitions to become a leading player in the global aviation industry from our home base of Asean, bridging connectivity in the world.”

Shares of AAX ended four sen or 2.26% lower at RM1.73 on Friday, valuing the stock at RM773.44 million ahead of the results announcement.

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