AirAsia X To Lease Another Airbus A330-300 Ahead Of Busy Winter

Noting a credible surge in seat capacity for this year’s second quarter, Malaysian long-haul low-cost carrier AirAsia X flew high in profits with more than four times the revenue earned during the same quarter last year. As demand for air travel is expected to surge for the year-end holiday season, the airline is looking to increase capacities further.

Back to profits

During the second quarter of this year, the budget carrier earned an impressive revenue of about RM512.9 million ($110.11 million), alongside an equally outstanding net profit of RM5.5 million ($1.18 million). These positives were a stunning turnaround from the net losses earned during the same period last year.

Compared to the mere five aircraft in active operation last year, a more comprehensive fleet composition this year after the gradual regrowing process began in December significantly contributed as a critical factor in driving AirAsia X’s soaring recovery as the airline’s seat capacity grew over 26 times year-on-year to approximately 818,422 seats flown.

Photo: Airbus

On the hunt for some Airbus A330s

AirAsia X currently operates a fleet of 12 Airbus A330-300s, with another five parked – undoubtedly still a significantly far cry from the 25 Airbus widebodies operated during the airline’s heydays before the global pandemic. The budget carrier also has quite a massive order book with Airbus.

This includes about 20 Airbus A321-200XLRs and 15 Airbus A330neos, all of which would help boost capacities for AirAsia X, just not in time to meet the demand for the upcoming winter schedule. This is why the airline seeks to add at least one more aircraft to its fleet and has been working with different leasing partners to ensure the required aircraft can be reinstated to active duty as scheduled.

Focusing on core markets

Concerning the schedule, AirAsia X expects an estimated 16 aircraft to be fully operational to support network requirements by the end of this year, with an anticipated average load factor of at least 82% as more routes will gradually get relaunched. More specifically, the low-cost carrier is focusing on core markets such as China – with over 15 routes to and from China currently being operated with more than 129 weekly flights.

Photo: GingChen | Shutterstock

This number is slated to increase before the year-end as the airline plans to launch additional fresh new routes as part of an expansion process within the country. Besides focusing on this core market, AirAsia X will also use the extra capacities to increase flight frequencies on high-demand routes to strengthen its position within other significant markets. While not specified, the airline also hinted at expanding its reach to other regions before this year-end.

Bottom line

Given that the end of this year is about four months away, AirAsia X remains confident that the expected changes in the following months will enable the airline to sustain the current upward trajectory to ensure the viability of its earnings for perhaps the best year yet since the pandemic occurred.

Source: ch-aviation