AirAsia X has emerged from the shadows of financial distress, shedding its Practice Note 17 (PN17) status after a remarkable comeback fueled by a strong performance in the third quarter of 2023. The airline’s PN17 status, a designation for troubled businesses in Malaysia, had been a significant hurdle for AirAsia X, but through a combination of strategic debt restructuring, cost-optimization measures, and a renewed focus on its core markets, the airline has successfully navigated its way out of this challenging phase.
On November 22, 2023, Bursa Malaysia, the country’s stock exchange, officially uplifted AirAsia X’s PN17 status, recognizing the airline’s significant financial improvements. This decision marks a pivotal moment for AirAsia X, paving the way for a new era of growth and prosperity.
Third Quarter Results
The airline’s third-quarter results paint a compelling picture of its resurgence. Operating profit doubled to MYR60.3 million ($12.9 million), while revenue soared six-fold year on year to over MYR648 million. These remarkable figures are a testament to the airline’s resilience and ability to adapt to the evolving travel landscape.
Passenger volume during the quarter also experienced a staggering ten-fold increase, reaching over 807,000. This surge in passenger traffic reflects the growing confidence in AirAsia X and the pent-up demand for travel following the global pandemic.
AirAsia X’s Chief Executive Officer, Benyamin Ismail, expressed his optimism for the future, stating, “Our strategy to enhance the company’s network recovery and strengthen yield in line with demand in our core markets remains a priority. We are pleased to share that over the past 12 months, all key business performance metrics continued to exceed expectations, even as travel demand has normalized after the initial boom resulting from pent-up demand.”
Opening New Routes
With a renewed sense of purpose, AirAsia X is setting its sights on exciting new horizons. The airline is poised to launch flights to Almaty, Kazakhstan, marking its first foray into Central Asia. Additionally, AirAsia X is actively exploring opportunities to capitalize on the burgeoning Chinese travel market, recognizing its immense potential for growth.
AirAsia X Chairman Mahmood Fawzy echoed the airline’s enthusiasm for the future, stating, “We are very excited about the new opportunities that lie ahead for AirAsia X. We have emerged from the PN17 status stronger than ever before, and we are committed to continuing to provide our passengers with the best possible travel experience.”
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