AirAsia X First Quarter 2025 Financial Results

AirAsia X’s Q1 2025 Success

AirAsia X Berhad has disclosed its unaudited financial results for the first quarter ending on March 31, 2025. The company reported a revenue of RM940.1 million, reflecting a 3% year-on-year increase from RM908.9 million in 1Q24, spurred by a 12% rise in capacity to 1.29 million seats. Corresponding with this capacity growth, AirAsia X also experienced a 12% year-on-year rise in passenger traffic, totaling 1.08 million passengers. This increase was fueled by sustained demand in key markets and effective capacity management, resulting in a strong Passenger Load Factor (PLF) of 83%.

In this quarter, the average base fare was RM550, consistent with the Company’s load-active, yield-passive approach. Ancillary revenue continued to be a crucial driver of margins in 1Q25, with ancillary revenue per passenger increasing by 10% year over year to RM277. This growth, along with a larger passenger base, led to a 24% year-over-year rise in total ancillary revenue, which reached RM298.3 million. The increase is attributed to improved take-up rates, bolstered by enhanced digital personalization and targeted product offerings that maximized spending per passenger.

The Company reported a net profit of RM50.2 million, reflecting a 5% margin, despite an expanding cost base in line with operational growth. The cost per available seat kilometer (CASK) increased slightly to 13.97 sen due to marginally higher staffing costs linked to the additional aircraft in operation and airport-related expenses. However, these increases were somewhat offset by a decrease in jet fuel prices year-over-year and a reduction in aircraft lease costs, as most aircraft transitioned out of pay-by-hour agreements since 1Q24.

In 1Q25, AirAsia X increased its Available Seat Kilometres (“ASK”) by 17% year-on-year to 5,878 million. This strategic move aimed to align capacity with peak demand during festive and holiday seasons. Japan and Australia stood out as significant outperformers in the network, with main routes achieving impressive load factors of 85% to 90%, indicating ongoing travel demand and efficient capacity optimization in high-yield markets.

AirAsia X Thailand (“TAAX”), an associate of the Company, achieved revenue of RM512.7 million and reported an operating profit of RM15.5 million for 1Q25. This quarter, TAAX served 500,128 passengers, reflecting a 14% year-on-year increase, while seat capacity rose by 23% year-on-year to reach 604,584 seats, resulting in a solid PLF of 83% for the quarter. The initial impact from transitioning the hub from Suvarnabhumi to Don Mueang in October 2024 has stabilized, with the network now functioning at peak efficiency. TAAX’s average fare remained robust at RM833 per passenger this quarter.

As of March 31, 2025, AirAsia X’s fleet expanded to 19 A330 aircraft with the addition of one aircraft from a third-party lessor. Out of these, 17 aircraft were active and operational. TAAX operated a fleet of 10 A330s, facilitating network recovery and growth in key markets.

AirAsia X CEO, Benyamin Ismail said: “This has been a stellar quarter of delivering sustained passenger load and profitability. In February, we took delivery of one additional aircraft, and today, the Company has 18 out of its 19-aircraft fleet operational. The final aircraft is on track for reactivation by mid-year, and we are focussed on ensuring full fleet deployment to meet market demand.

“Our network continues to demonstrate resilience, particularly on core routes to Japan and Australia, where load factors consistently trend around the 90% mark. Building on this momentum, we are capitalising on our first-mover advantage in Central Asia by ramping up capacity to Almaty, Kazakhstan in the second half of the year, with further expansion in the pipeline. Recently, we have announced the suspension of Nairobi, Kenya. It was difficult, but crucial for us, as the initial assumption for premises of financial support did not materialise eventually. Essentially, we are driven by disciplined network management, allowing us to redeploy capacity to higher-yielding, strategically aligned markets.

“A key pillar for our business is Fly-Thru connectivity, which consistently accounts for approximately 20% of our passenger traffic, anchored by high-performing routes from Korea, Japan and Kazakhstan. Establishing seamless connectivity sets us up for a massive upside , particularly as we advance towards the proposed acquisition of Capital A Berhad’s aviation business, which includes AirAsia Berhad and AirAsia Aviation Group Limited, encompassing AirAsia Thailand, AirAsia Indonesia, AirAsia Philippines and AirAsia Cambodia. The integration will unlock immense synergies and enhance our network connectivity, ultimately elevating the enlarged group’s competitive positioning in the region and beyond.

“We’re pleased to report continued double-digit growth in ancillary revenue per passenger, driven by focused personalisation and improved takeup rates. This, along with our lean cost structure and operational efficiencies, positions us for a strong 2025. We are mindful of the softer travel season in the second and third quarters, but are encouraged by the forward sales momentum. We are vigilant and prudent in the face of global geopolitical uncertainties, but are confident that we are able to stay disciplined and growth-oriented in a sustainable manner.”