KUALA LUMPUR (May 28): Medium-haul low-cost carrier AirAsia X Bhd (KL:AAX) reported a 37.34% year-on-year (y-o-y) decline in its first quarter net profit to RM50.21 million from RM80.12 million a year earlier, due to higher operating expenses. 

The group said its maintenance and overhaul expenses increased to RM202.79 million during the quarter ended March 31, 2025 (1QFY2025) from RM124.99 a year earlier. 

Earnings per share dropped to 11.20 sen from 17.90 sen previously, AAX's bourse filing on Wednesday showed. 

Revenue for the quarter increased 3.43% y-o-y to RM940.08 million from RM908.92 million, which the group attributed to a 12% growth in capacity to 1.29 million seats.

The airline's passenger traffic also rose 12% to 1.08 million passengers, resulting in a passenger load factor of 83%.

No dividend was declared for the quarter.

Looking ahead, AAX announced plans to ramp up capacity to Almaty, Kazakhstan in the second half of the year. This expansion is part of a broader strategy to enhance connectivity across the Central Asia region, following recent route successes in Kazakhstan.

Meanwhile, the group also confirmed the suspension of its Nairobi, Kenya route effective September 2025, following the "non-materialisation of anticipated financial support", prompting the company to re-evaluate its network strategy and redirect capacity toward more profitable markets.

With an eye on seasonal trends, AAX noted that while the second and third quarters traditionally see a dip in performance, forward bookings remain encouraging — supported in part by a continued increase in ancillary service uptake.

The group expressed confidence in maintaining its current momentum as it approaches the traditionally strong fourth quarter, spanning the October to December period.

Assuming a stable economic and regulatory environment, AAX expects to achieve revenue of between RM3.5 billion and RM4 billion for the full year, supported by seasonal demand peaks in the first and fourth quarters, and localised travel upticks during the summer in Almaty and China’s Golden Week in the second and third quarters.

AAX’s shares closed five sen or 2.9% higher at RM1.79 on Wednesday, valuing the group at RM800.3 million. Year to date, the stock has retreated 10.5%.