AirAsia X confident of getting into the black this year

Author: Tan KW   |   Publish date: Wed, 1 Jun 2016, 03:33 PM 

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SEPANG: AirAsia X Bhd (AAX) is confident that the long haul low-cost airline will be profitable this year, following stellar financial performances in 4Q2015 and 1Q2016.

 

AirAsia X Group CEO Datuk Kamarudin Meranum said that the airline enjoyed a welcome change in 4Q2015 with operating profits that extended to the first quarter of this year.

 

He said the only hurdle to being in the black this year comes from the second quarter which is traditionally a challenging quarter for airlines.

 

"Normally, the second quarter is the most challenging and is not as good as the first quarter, but we are positive, and we believe we should be in the black (this year)," Kamarudin said.

 

He added that 3Q and 4Q usually prove to be the buffer quarters, and that the company is able to "make the budget" so far.

 

He was speaking to the media after the company's AGM here today.

 

Kamarudin said that the main challenge for the airline this year comes mainly from fuel costs and currency fluctuation, and the airline is proactively hedging on this front.

 

AirAsia X CEO Benyamin Ismail who was also present at the media briefing, said the company will continue to focus on its current long-haul routes, as it goes about negotiating new routes.

 

Benyamin said the company was negotiating on two new routes in China at present, the locations of which he said cannot be revealed until after receiving the necessary regulatory approvals.

 

Kamarudin also commented on AirAsia Group CEO Tan Sri Tony Fernandes' comment yesterday that AirAsia X is one of AirAsia's strategic investment business and that it would be sold at some point, saying that there Group had no plan to disengage from AAX at the moment.

 

Although Kamarudin admitted that AAX is an investment that can be monetised, he explained that he personally doubted any imminent disposal as it is AirAsia Bhd's core asset.

Read More : http://www.nst.com.my/news/2016/05/148812/airasia-x-confident-getting-black-year