AirAsia X generates operating profit in third quarter

Malaysian long-haul low-cost carrier AirAsia X swung to an operating profit in its financialQ3, with revenues climbing sharply from a year earlier. For Q3 ended 31 March, AirAsia X generated a net operating profit of MYR33.6b ($7.7b), according to its results statement. Revenue for the quarter came in at MYR113m. The large net operating result stems from a write-back related to the carrier’s restructuring. Owing to a change in its financial year, the carrier did not provide figures for the previous corresponding period in 2021. However, the carrier’s results statement for the three months to 31 March 2021 show that a year earlier it suffered a net operating loss of MYR5.3b, and posted revenues of just MYR38.5m. Cash burn continues to be a challenge for AirAsia X, which has undergone a major restructuring. As of 31 March, AirAsia X had MYR43.7m in cash and cash equivalents, down from MYR68.5m at the beginning of the quarter. The carrier notes that it felt the full impact of the coronavirus pandemic, which saw the majority of its fleet grounded. This resulted in AirAsia X defaulting on various contracts.<br/>