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AirAsia X yields skyrocket as Malaysian competition rationalises and key markets pick up

26-May-2016

AirAsia X achieved revenue growth of 25% year-on-year in 1Q2016, a welcome improvement, as traffic and fares grew strongly.

Through the remainder of 2016, AirAsia X will reduce its wet lease operation and focus on expanding its scheduled services amid stronger demand in its core markets of Australia and China where more than 50% of its capacity by seats is deployed – and where the biggest improvements have been made.

Despite the strong and improving performance at AirAsia X and Thai AirAsia X, the Indonesian arm of the operation has an uncertain future as it falls under review due to restrictions imposed by Indonesian regulators.

The airline's core growth market is facilitating connecting traffic from Australia through to China, India and Iran – reflecting the weakened position of Malaysia Airlines in the ex-Australia transit market. Having returned to a strong growth position, AirAsia X is currently reaping the rewards – but unlike previous excursions, with a much more diligent focus on the commercial side.

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