business

AAX's Q2 net loss widens to RM207.11mil on unrealised forex loss

KUALA LUMPUR: AirAsia X Bhd’s (AAX) net loss widened to RM207.11 million in the second-quarter (Q2) ended June 30, 2019, from a net loss of RM57.46 million a year ago.

In an exchange filing today, the long-haul unit of AirAsia Group said the net loss incurred was due to unrealised foreign exchange loss as a result of weaker ringgit against US dollar.

Its Q2 revenue eased 4.72 per cent to RM1.01 billion from RM1.06 billion, dragged by a loss of disposal of three aircraft under sale and leaseback during the period.

For the first-half of 2019, AAX’s net profit broadened to RM163.78 million from RM15.96 million, while revenue reduced 6.44 per cent to RM2.18 billion from RM2.33 billion.

AAX expects its operational environment to remain challenging against global economy backdrop and pressure on the ringgit.

“We are also concerned on the implementation of departure levy effective from September 1, 2019, which may potentially impact the demand for air travel,” it said.

However, the company expects the remaining quarters to remain reasonably healthy as it continued to push for efforts to mitigate cost pressures.

In a separate statement, AAX chief executive officer Benyamin Ismail said the airline was poised to focus its growth and presence in key markets in Northern Asia, India and Australia, leveraging on its network rationalisation undertaken over the past two quarters.

“We look towards ramping up capacity and driving up utilisation going into the third and fourth quarter of 2019,” he said.

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