AirAsia Aviation hits record quarterly earnings amid strong passenger growth

AirAsia Aviation reported its highest-ever quarterly financial results, on the back of sharp rise in revenues, and despite operational costs increasing. For the three months ended 31 March, the low-cost airline group, which is part of Malaysia-based Capital A, posted a positive EBITDA of MYR958m ($203m), up 91% year on year. The figure is also an improvement on the seasonal peak of the 2023 year-end period, the group notes. The group, with units in Malaysia, Thailand, Indonesia and Thailand, more than doubled its Q1 revenue to around MYR5b, amid a sharp rise in passenger volumes across the network. The airline units carried 15.4m passengers during the quarter, an 80% jump year on year, with traffic and capacity rising 86% and 81% respectively. At the same time, the average airfare had also rose about 26% year on year to MYR264 per passenger. AirAsia saw its operational expenses increase – with staff costs up nearly three-fold, and fuel costs doubling – as it ramped up operations. AirAsia Aviation chief Bo Lingam says: We’re thrilled to kick off the year with a strong start achieving our highest-ever quarterly performance after a year of revitalising our aviation business. As we transition into the second quarter and demand stabilises, we remain confident with plans to optimise operations and increase ancillary revenue.” The airline group expects to increase its operating fleet - by reactivating its remaining stored aircraft - by the year-end, which it intends to us “to extend our reach to new destinations, including the potential of some we have never flown before”, says Lingam. <br/>