AirAsia X 2Q2016 profit supported by revenue growth on stronger demand and load factor

AirAsia X Group (AAX Group) reported (23-Aug-2016) its first second quarter profit in 2Q2016, boosted by 35% year-on-year growth in revenue on the back of a 71% increase in scheduled services revenue due to stronger demand and improved load factor. ASKs increased 17% due to frequency increases on high-traffic routes. RASK increased 15% and the average base fare increased 34%, mainly due to higher contributions from the China and North Asia markets. CASK decreased 2% due to lower fuel prices, slightly offset by five additional A330 operating lease aircraft with higher rental rates. The carrier operated 30 aircraft as of Aug-2016 and will take no more deliveries until 2018. AirAsia X Group CEO Kamarudin Meranun reported an "encouraging" forward booking trend for 3Q2016 and improved forward loads and average fares. Mr Kamarudin said, "The future for AAX Group will see us expanding to China and other core markets, in line with our strategy to build market dominance within the region." [more - original PR]