AirAsia X is set to fully reactivate its fleet of 18 Airbus A330s by the end of this year. This move marks what the airline describes as the “final hurdle” in its network expansion efforts. Additionally, the airline is finalizing the lease of an additional A330, which is expected to join the fleet in early 2025.
The airline’s fleet reactivation plan comes as AirAsia X reported financial results for the quarter ending June 30, 2024. Despite the challenges of rising operating costs, the airline remained profitable, posting an EBITDA of MYR58.4 million ($13.4 million). However, this figure represents a decline of more than 40% compared to the same period last year. Net profit for the quarter stood at MYR4.8 million, slightly lower than the MYR5.5 million recorded in the previous year.
In addition to fleet expansion and market growth, AirAsia X is in the process of acquiring its sister carrier, AirAsia. This merger, expected to be completed by the end of the year, will see both airlines operate under a single brand, further streamlining operations and expanding their reach.
According to a report from FlightGlobal, AirAsia X saw a 30% increase in revenue, reaching MYR669 million, even though it was a “traditionally weaker” quarter for the airline. This growth was driven by a 42% rise in passenger volume, with more than 880,000 passengers flying with the airline, and a 30% increase in capacity.
However, the airline’s growth was offset by a significant rise in operating costs. Fuel expenses surged by 43%, and staff costs increased by 26%. Maintenance costs also saw a slight uptick due to the increased number of aircraft in operation.
Expanding into New Markets
AirAsia X is focused on expanding its operations across various regions, including venturing into “unique markets” while rebuilding capacity in its core markets. The airline’s operations in Mainland China have shown “encouraging” results, with plans to launch flights to Chongqing, marking its seventh destination in the country.
The airline’s recent expansion into Central Asia, particularly with flights to Almaty, Kazakhstan, has been described as “thriving.” According to AirAsia X Chief Executive Benyamin Ismail, the passenger load factors on this route have remained around 90% since its launch in March.
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
