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AirAsia X slashes capacity to Sydney, Perth and Gold Coast as focus shifts from Australia to Asia

Premium Analysis

AirAsia X Malaysia is slashing capacity to Gold Coast, Perth and Sydney in 2018 in an attempt to improve the profitability of its Australia operation. The long haul low cost airline is cutting flights to Perth by 50%, to Gold Coast by 36% and to Sydney by 21% from the beginning of Feb-2018.

AirAsia's total Malaysia-Australia capacity will drop by 26% year-over-year. However, AirAsia X may add flights to Melbourne later in 2018, partially offsetting the declines elsewhere in Australia.

This is the second time in three years that AirAsia X has slashed capacity to Australia. Capacity was cut by nearly 40% in early 2015 as part of a major network restructuring, but all the capacity was added back over the last two years as AirAsia X resumed expansion.

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