Malaysia's long-haul budget carrier AirAsia X Bhd logged a four-fold jump in quarterly profit on Tuesday, courtesy of higher passenger volume and shrinking costs. Net profit for the January-March quarter rose to 41.5 million ringgit ($10.47 million) from 10.3 million a year earlier while revenue rose 7.2 percent to a record 1.3 billion.
AirAsia X saw an increase in passenger volume of 13 percent which the carrier attributed mainly to new routes started since mid-2017. Moving capacity from some Australian routes to flights to the North Asian market also helped. AirAsia X said its cost per unit fell 2 percent year mainly due to the ringgit strengthening against the dollar. The ringgit strengthened 4.5 percent in the first quarter, helping offset a rise in oil prices.
Its average fuel price rose 33 percent to $88 per barrel, the airline said. Excluding fuel, it cut its costs per unit by 10 percent. "The company recognises the challenges posed by the recent hike in fuel prices, and best mitigative efforts are being put forth through the boost in ancillary and capacity numbers," the airline said in a bourse filing.
AirAsia X maintained an unchanged load factor - the measure of how full its planes are - of 84 percent while expanding capacity by 14 percent. It carried 1.59 million passengers in the quarter. AirAsia X's share price closed 1.3 percent higher.
Tony Fernandes, the group CEO of its parent, recently accused the Malaysian Aviation Commission of pressuring the airline to cancel flights meant to transport voters home for a recent general election. The regulator has denied the allegation and filed a police complaint against Fernandes.