AirAsia, AirAsia X see revenue boost in ‘seasonally softer’ Q3

Low-cost operators AirAsia Group and AirAsia X saw an increase in revenue in what they note has traditionally been a low season, with travel demand remaining strong amid network and fleet growth. AirAsia, which is the process of being divested from parent Capital A, disclosed a positive EBITDA of MYR578m ($130m) for the three months ended 30 September, up about 50% year on year. Revenue for the quarter grew 15% to MYR4.5b “despite being a seasonally slow quarter”, the airline group states. AirAsia also cites “favourable” fuel prices and the strengthening of the Malaysian Ringgit against the US Dollar among reasons for an improvement in its earnings. AirAsia Aviation head Bo Lingam says the group is “optimistic” about its year-end outlook, and is boosting its fleet to meet demand. The airline group, which has units in Malaysia, Indonesia, the Philippines, Cambodia and Thailand, grew its fleet to 221 aircraft, of which 181 were operational. By the end of the year, Lingam says the group will be taking delivery of five new Airbus A321neos, to be placed in its Thai and Malaysian carriers. “We expect to maintain high load factors exceeding 85% and robust average fares, driven by year-end festivities,” he adds.<br/>